president's meeting with congressional leaders. the president sitting face to face with nancy pelosi and chuck schumer since the shut down began 12 days ago. all sides set to get a briefing on both sides from dhs officials. here's trace in for shep. >> today the shut down showdown and the battle over the border after a dramatic and wide-ranging cabinet meeting. the president bringing lawmakers from both sides in the situation room and we're waiting to hear whether they figured out a way to get the entire federal government back up and running. after wall street's worst year in a decade, the dow had a shaky start. we'll see what's happening. and mitt romney taking aim at president trump. today the president hits back. that's coming up in this hour. i'm trace gallagher in for shep. president trump a short time ago sounding off on everything from immigration and syria to kim

jong-un and kanye west during a cabinet meeting. we'll get to all of it. we will begin with day 12 of the government shut down and a meeting scheduled to start any moment between the president and top lawmakers from both parties. it's happening in the white house situation room. no cameras. we saw lawmaker as arrived. we saw them moments ago arrive. we'll keep an eye on the west wing to see if anybody talks about potential progress. in that cabinet meeting, president trump insisted he will keep the government closed for as long as it takes until he gets money for his border wall. >> how long is the government going to stay partially shut down? >> could be a long time, could be quickly. could be a long time. it's too important a subject to walk away from. i think the people of this country think i'm right. again, i could have done nothing. i could have a lot easier presidency by doing nothing. i'm here, i want to do it right.

>> incoming house speaker nancy pelosi and chuck schumer set to attend the meeting. nancy pelosi has accused the president of using the shut down to try to force an expensive and ineffective wall upon the american people. leader schumer has told president trump, you will not get your wall. meantime hundreds of thousands of federal workers are caught in the crossfire and going without paychecks. let's get to the white house correspondent kevin corke that was inside the president's cabinet meeting earlier today. kevin? >> what a meeting it was. it lasted about an hour and 45 minutes that we were just inside. it was wide-ranging. the president touching on a number of different topics. most notably as you said, this afternoon's meeting is about border security. it's going to involve the folks from ice, border patrol and other officials from dhs and effective what they're trying to do is make the argument that now is the time to put politics aside. fund this wall. don't take my word for it as the

president. take the word of the people actually on the ground. that was the message from the president today. so cabinet meeting that i mentioned earlier today, he said it was about safety and security of the american people. he also said it was about an exploding humanitarian crisis that is taking place along the southern border. who is in this meeting this afternoon? i've got a few names i can share with you. it's pelosi, hoyer, mccarthy, scalise, mcconnell, thune, schumer and durbin. federal workers caught in the crossfire. for folks at home, the democrats say listen, we want border security. we just don't want to pay for a wall that we think is ineffective. the president said today without a wall, it won't do enough. that's his argument. that's the argument apparently of officials from ice and border patrol make this afternoon as well. trace? >> so in essence, kevin, we're

going into this meeting in a standstill. what are we hearing from democrats ahead of the meeting? >> a couple things. the strategy is let's pull him down off of the $5.6 billion number here and get government workers back to work. you've been in the beltway. americans all over the country not only rely on their jobs but relying on leadership to get the job done. interesting before i tell you about a tweet that we saw yesterday from nancy pelosi where she rejected this olive branch that the president was floating out there, i want to share a quick sound bite from the president from the cabinet meeting. he was asked about this idea that a wall is immoral. listen to how he compared it to another famous wall. >> when they say the wall is immoral, well then you better do something about the vatican. the vatican has the biggest wall of them all. the wall is immoral. look at all of the countries that have walls.

they work 100%. it's never going to change. a wall is a wall. the others just -- we can have all the dones flying over the people last night as they tried to rush the border. the only thing that stopped them was the wall. >> that's the president's position. now you may have also noticed for the folks that have been watching this afternoon, the presumptive incoming speaker is here at the white house for the meeting. yesterday i mentioned that she had a tweet where she effectively shot down the president's offer. she said we're fortunate as democrats to have a great opportunity to show how we will govern responsibly and quickly pass our plan to end the irresponsible trump shutdown. so you get a sense, trace, of what the mood is like and as i get more information and material, i'll be certain to pass it along to you. for now, back to you, my friend. >> yeah, back to you. kevin corke live at the white house. team fox coverage continues. the fox business network's edward lawrence reporting live on capitol hill.

edward? >> trace, yeah, nancy pelosi standing firm as you heard kevin corke say that nancy pelosi is ready to put forward a bill to get the government being but no money for the border wall. their way of saying they're doing something here. expect that vote tomorrow. freshman lawmakers on the democratic side coming into the house already talking about this. freshman lawmaker max rose says that he does not support nancy pelosi for speaker. he will be voting tomorrow on that once he's sworn in. he says there needs to be a deal on this border wall. >> in this instance, the president's actions have been embarrassing. the president said on national tv, he said i'd be happy to shut down the government. i'm happy to do so all to achieve what i believe is a vanity project at the southern border. >> any series of bills that goes through needs to get 60 votes in the senate in order to pass. all they're looking -- democrats

are looking towards mitch mcconnell, senate majority leader mitch mcconnell does say that he would not put forth a bill in the senate that the president would not sign. so we're at an impasse. trace? >> yeah, we were talking about the white house, the democrats and the republicans, no talk going on over there. what about on capitol hill? are both parties talking to each other there? >> that's an interesting thing. from the republican house standpoint, they did their job. they passed a bill that had the $5.6 billion the president wants in the bordered wall. listen. >> we sent a bill over to the senate that included disaster funding, including relief for the disasters and also included border wall funding. that would have done it. got over to the senate. now chuck schumer and the senate democrats are the ones that are holding it up. so we did our job in the republican majority in the house. >> democrats digging in at this point. the democrats in the senate looking to chuck schumer who

right now is saying that they will vote no on any bill that comes forth with extra border wall funding. we'll see what happens out of this meeting, trace. >> edward lawrence live on capitol hill. much more from president trump's cabinet meeting including his comments on kim jong-un. the president says he's now ready to talk nukes with the north korean leader again as the dictator issue as warning to the u.s. in his new year's address. plus, starting a new job can be pretty tough sometimes, right? figuring out your new responsibilities, organizing your desk and deciding what to do about north korea, syria, afghanistan and iraq. the challenges ahead for the acting secretary of defense next. ♪ (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.

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>> trace: first, a live look at the white house where the president is meeting with leaders from both parties. the objective is to try to resolve the government shut down, the partial government shutdown. 25% of the government is shut down. the meeting is being held in the situation room meaning that no cameras are allowed inside. when the information begins trickling out, we of course will bring it to you throughout the hour. meantime, president trump now says that he essentially fired his defense secretary, james mattis. mattis submitted his resignation letter the day after president trump made a surprise announcement that he was going to pull u.s. troops out of

syria. mattis was originally supposed to stay on through february. then president trump announced the deputy defense secretary, patrick shanahan would be taking over as acting secretary on january 1. lucas tomlinson reporting live at the pentagon. lucas? >> trace, in his first meeting as acting defense secretary, patrick shanahan told senior leaders here to remember china, china, china. a sign that this new defense chief plans to ramp up focus on china. shanahan arrived at the pentagon bright and early at the pentagon's river entrance just before sunrise. >> priority number 1. >> at the white house a short time ago, president trump kept up his attacks on his former defense secretary jim mattis. the president says he fired mattis. >> what has he done for me? how has he done in afghanistan? not too good.

as you know, president obama fired him and so did i essentially. i want results. >> officials say mattis submitted his resignation letter face to face to the president and it wasn't forced. trace? >> trace: it's not a big surprise here but china is a big focus for the acting defense secretary. >> patrick shanahan was a long-time executive at boeing for over 30 years. he knows what china's property rights violation rights look like first hand. in a big speech in china, china's president said he told taiwan not to declare independence. >> the reunification is the historical trend and the right path while taiwan's independence is an adverse current and a dead end. >> a blockbuster report released from a panel of experts warned about the rising threat from russia and china. it said america has reached the

point of a full blown national security crisis and risk losing to russia or china in a war. that's one of the reasons that shanahan will be asking the president and congress for more billions in spending. >> trace: thank you. president trump says he's ready to have another meeting with kim jong-un. he said he got a great letter from the dictator. kim said he's willing to meet again but says he may take a new path if the u.s. does not ease sanctions on north korea. rich edson is reporting live at the white house. rich? >> president trump says he's looking forward to meeting again with kim jong-un. he talked about that letter at this cabinet meeting with the north korean dictator. in fact, he brought the letter

with him to the cabinet meeting. >> i just got a great letter from kim jong-un. those few people that i have shown this letter to, they have never written letters like that. this is a great letter. we made a lot of progress with north korea and kim jong-un. chairman kim has been -- we've had -- we established a very good relationship. a lot of good things are happening. >> it's unclear when or where the president and kim jong-un will meet again, if they meet again. they last met in june at the summit in singapore where they agreed to the broad outlines of a way to get north korea to give up their nuclear weapons program. implementing that has been a challenge as north korea has not shown any significant sign that they're dismantling their nuclear program and ballistic missile program. officials do point out though that over the past year in fact longer than that north korea has refrained from launching missiles or exploding nuclear

weapons. the south korean government says it also received a letter from kim jong-un, the president there, and the two want more meetings in 2019, trace. >> trace: rich, kim jong-un has a habit of sending mixed messages and he's still committed to his agreement with the president, right? >> that's right. he says in this address that kim jong-un gave on new year's day, his annual new year's address, he says he's opened to the commitments that he made and he wants to impress the world community. but he wants the united states to respond in kind. what he is discussing there is he wants the u.s. and its allies to give up a number of the sanctions that it has had on north korea. the problem is the u.s. administration has refused to do so until north korea surrenders their nuclear weapons and ballistic missile program. the president at this cabinet meeting spoke on more than a half hour on different topics

from north korea to syria and kanye west. kanye has been tweeting support for the president. he said kanye west is a good guy and he says he's smart and he sees what we're doing, a little bit of everything here. >> kanye to north korea. thanks, rich. mitt romney going after president trump again. the president firing back on twitter. we'll look at the latest back and forth as romney gets ready to join the senate. senator elizabeth warren taking another step towards a possible white house run. she's heading to a key state this weekend. we'll tell you which one coming up. i am a family man.

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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. >> trace: that's a live look outside the west wing. the president is inside right now meeting with lawmakers from both parties. they're trying to resolve the 12-day partial government shutdown. it all comes down to funding for the border wall. negotiations going on right now. it's in the situation room meaning no cameras inside. you can see there's a camera position set up outside. we believe when the meeting concludes that we'll have people come to those microphones. when we do, we'll bring it to you live. the incoming utah senator mitt romney ripping in to president

trump. the former republican presidential nominee criticizing his character in an opinion piece for "the washington post." the president talked about romney in his cabinet meeting. ellison barber has more. >> the president is telling romney to be a team player and focus on issues that are more important, things like border security. in the cabinet meeting, president trump told reporters that if romney fight like he's fighting right now, he would have beaten president obama. the senator-elect says president trump has not risen to the mantel of the office. he said december marked a deep dissent for trump's presidency and showed the staff changes like jim mattis as evidence. romney claims the president's words and actions have caused dismay around the world and

while he supports some of the president's policies and appointments, it's simply not enough. with the nation so divided, recentful and angry romney writes, presidential leadership is indispensable and it's here where the incumbent's shortfall have been most glaring. the president endorsed romney last year. romney accented the endorsement but they have never been best friends. >> the bullying, the greed, the showing off, the misogyny, the absurd third great thee attics. >> he's a cold loser and he choked. you never give a choker a second chance. >> the president in 2012 remarked of 2016. he said romney wouldn't have accepted trump's endorsement back then if trump said four years ago the things that he says today. trace? >> trace: ellison, how are other

republicans reacting to this back and forth? >> a lot of them are coming to the president's defense here. most notable, ronna mcdaniel. she's siding with president trump here instead of her uncle tweeting this. >> trace: ellison barber live in washington. thank you. democratic senator and possible presidential candidate elizabeth warren heading to iowa, home of the nation's first presidential contest. that's according to the explore story committee she launched two days ago. the iowa caucus is scheduled for february 3 of next year.

david spunt reporting live from washington. >> she announced the final day of 2018, she's been planning that trip to iowa. a source with the state's democratic party said she will be there this weekend to not only meet with voters and party leaders and be there to fund raise. as of today, warren is the highest profile democratic candidate to announce an exploratory meeting saying she can hire a staff and accepted donations for a campaign. she will make stops in des moines and council bluffs. warren has long been a target of president trump and vice versa. she made a name for herself as an attorney an consumer advocate. senator warren continues to answer questions about a decades old claim about her native american heritage. she released results of a dna test in october that showed that she had native american relatives six to ten generations back. president trump has repeatedly called senator warren pocahon s pocahontas.

she's called him back a racist bully. president trump said he hoped that warren would run and he would love to run against her. warren did take to instagram monday evening to do a live chat from her kitchen about her presidential aspirations. at one point, trace, she told those tuning in to hold on while she grabbed a beer. a live chat that was reminiscent of beto o'rourke and alexandria ocasio-cortez that have done similar live chats. warren says she will make more of a formal announcement about a campaign. her hometown newspaper, the "boston globe" called her a divisive figure. trace? >> trace: we'll be hearing from another potential democratic candidate soon. >> that's true. former hud secretary, julian castro announced an exploratory committee. he will make a formal decision saturday january 12.

back to you. >> thanks, david. live in washington. breaking news right now in the final hour of trading on wall street. let's take a live look at the dow. it started off shaky this morning. now it's not great, not horrible. it's down about 90 points. the dow has been on a very rough -- had a very rough ending of 2018. shaky coming out of 2019. this comes after stocks had their worst year in a decade. kristina partsinevelos reporting live from the new york stock exchange. kristina? >> i'm going to steal your sign and say not horrible. the dow down 400 points earlier today. a lot of volatility. still is. traders today are saying they're watching the white house. they're continues to be news across the board. we took the cabinet meeting live at 2:00 p.m. with the president. that's immediately when you did see a downward trend. we can bring up the dow. literally to show the green arrow.

that's when the president went live. we saw it move downward afterwards. he said in december the sell off was due to a glitch and then later on in the afternoon, he continued to say that they're working on the trade deals with china. that was seen as a positive. trader reacted right away with the buying of certain stocks. overall, if we're talking about china, the big fear in 2018 going now into 2019 is this slow-down from the second largest economy in the world. we had a pmi, a purchasing manager's index that came out from china showing that they further contracted. if you look at that number versus the united states in this graph that we'll show you, you can see the discrepancy how it's starting to weaken in china, which is the blue line and the united states lazy down because we received manufacturing data for the united states which came in lower compared to november. a lot of grass on the green, a lot of movement. another sector that moved is the energy sector.

why is that? earlier this morning, you had a report that saudi arabia is following through with their promises to cut production in december. so you received those numbers. that helped uptick the price of crude oil, which climbed higher. 1.5% higher for the day. still well off the highs that we saw in october where $75 a barrel. a lot of drivers are happy. lower gas for them, trace. >> yeah. the president himself said that he's the one that pushed those gas prices down. kristina partsinevelos live for us at the stock exchange. kristina, thank you. a lot happening in dc today with more to come on the partial government shut down. president trump meeting with lawmakers and refusing to back down on a border wall. we'll talk to a journalist that says it will be hard for the president to find a win on that. plus, the man accused of killing this police officer due in court today and that is coming up. patrick woke up with back pain.

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. >> trace: a man from mexico who is accused of killing a police officer in california is due in court in the next hour. prosecutors say the suspect was in the country illegally when he shot corporal ron singh in a traffic stop. william la jeunesse has more. >> he will hear a plea and likely an attorney. for the state of california, it's hard to say what will happen. governor brown and the new governor, gavin newsome, claimed the sanctuary law improves public safety. we did learn today that prosecutors may pursue the death penalty against gustavo arriaga.

he had two dui priors, one in 2011 and an accident and driving without a license and speeding in 2014. in most states after a felony arrest, local police will tell ice to put a hold on the inmate when they bond out. the suspect is deported. not here in california, trace. which the law prevents sheriffs from telling ice when that individual is getting out. you know, the sheriff's objected and they didn't get anywhere. >> what about those that helped him remain a fugitive? >> that's up in the air right now. perez faces 25 to years with life with the possibility of parole. however with this enhancement that they're filing, no parole or possibly the death penalty. for the seven others that helped him escape, three others helped him hide while on the run are all here illegally and under california all police are not allowed to ask immigration

status and also aiding an abelting are not deportable crimes. the sheriff cannot call ice when they will be released. so you're liking at maybe one to three years. again, ice does not know when they'll be released. >> thank you. the u.s. border patrol firing tire gas at my -- migrants at the southern border. watch. it happened near san diego. the feds say the violents were a mob that threw rocks at agents and agents responded with at least the least amount of force that they could to protect themselves. the associated press reports one of their photographers only saw rocks after getting tear gassed, this comes amid the government shut down fight over the president's shut down border wall. anita vogel has more.

>> it was very smokey. hard to tell what happened. the border patrol says migrants through the rocks first and agents responded with tear gas and pepper spray. both the a.p. and reuters photographers dispute that version of events. the a.p. specifically said rocks were thrown after the tear gas was fired. so we don't know what happened there. we do know that a large group from the caravan did rush the border after midnight. agents say they tried all kinds of tactics to get over the fence. some attempting to climb over and under the fence. teens and toddlers being hosted up. listen to tom holman. people behind the caravan are looking to create a political narrative. >> the people are taking on the border patrol. they want to make it a story about born abusing civil rights. the border patrol is doing their job. three protecting themselves. use of tear gas is used in this country all the time by police

forces. they're defending the border. >> while we didn't hear of any major injuries, we know that most people turned back to mexico. 25 were arrested at the border. >> trace: a couple months, we had the other tear gas incident. >> a much larger group. this was back on november 25. a group of about 500 to 1,000 members of the caravan stormed the border. it was basically the same scenario. border patrol agents say some members of the caravan were throwing rocks at them. they use tear gas and pepper spray to push the crowd back. today amnesty international put out a statement after the new year's event at the border saying using tear gas against men, women and children seeking protection is cruel and inhumane. there needs to be a thorough and independent investigation into the reported use of tear gas and other agents in this incident. migrants that are trying to come into the country one way or the other said they feel the same.

they don't feel like they have a choice. >> it has been very hard. it hasn't been easy. for me, i'm a mother and have a family. i have four children whom i left in honduras. it's very difficult. for a future, there has to be a will. >> of course, so many people feel that way. i'm sure we haven't seen the last of the caravan. trace, i can tell you this. nine out of ten asylum seekers that request asylum after being arrested or detained are rejected. they don't have the right paperwork. >> nobody is telling these people as they get to the border that that will happen. >> nobody is telling them. >> trace: thanks, a fox urgent. looking for an update on the partial government shutdown. let's bring in anna palmer from politco. anna, happy new year to you. thanks for joining us.

what do you make of this meeting? the democrats are offering $1.3 billion in border wall funding. the republicans before they released control of the house passed a bill of $5.6 billion. you think the president makes a counter offer in this meeting today or does he stand pat to his $5.6 billion number? >> it's hard to see a lot will get down. it's being described as a briefing where there's an update on what is happening down on the u.s.-mexico border. democrats are come in, we heard a lot of signals from capitol hill saying we're going to push back on the president if this is a partisan kind of review of what is happening down there. they said they'll do that in the meeting and do that after the meeting. so already you're seeing the two sides are not coming together to compromise. very entrenched on their two sides as they start the negotiations after the holiday break. >> trace: what is the goal for nancy pelosi? she starts today. they're going to pass the two bills. what is her goal coming out of

this meeting? is she going to come out saying, look, we're standing firm? is that what she wants the optic to be at the end of the day? >> listen, nancy pelosi is going to be speaker tomorrow if everything goes in her favor. so she's going to put these two bills forward. i think she says we're putting this forward. they need to react to that. all the signs point to the capitol saying the white house needs to tell us what they need and they need a compromise that we can move forward on this funding package, this is not something that pelosi wants to spend months and months on. she has an entire new liberal flank coming in. they have a lot of things that they want to be passing. as this government shut down continues to go forward, it's going to be harder and harder for them to have any kind of agenda going into 2019. >> lastly on this subject, you think -- you listen to newt gingrich and lindsey graham, if there's a deal on the dreamers,

the president saying let's get this deal, maybe there's some wiggle room on the border wall funding. >> the democrats have been very hard to say they're not going to try to tie daca to the border wall. i salt down with the president before the holidays. he said on daca he wanted it to go through the courts. he thought once that happened, they could find a deal on that. he at that point was not looking to tie the two deals together. it's unlikely that a deal comes together around that. >> trace: what do you make of this back and forth between mitt romney who is about to take office tomorrow and the president? >> well, they've had fireworks before. so i don't know that it is necessarily that surprising that they're on different sides of things. certainly a shot across the bow before he's even sworn in to office. mitt romney laying down where he stands, how he sees the president and the president responding in kind shooting messages across twitter.

so i don't -- i think there's a lot of issues there, a lot of senators have seen rand paul and others saying this is not what we need. we need to find ways as republicans to stand together. clearly mitt romney looking to be his own man as he's sworn in as a senator of utah. >> trace: are you surprised that the white house said that defense secretary matt tis retired and president trump said no, i essentially fired him. surprise you at all? >> i think clearly there's some bad blood there. the first tweet after he resigned, the president had a very nice response and then there's been some shots going back and forth. so i don't know that it's that surprising when somebody attacks the president or doesn't like how he's led, whether it's in the administration or externally. he's not shy to punch back. >> trace: yeah, the senior washington correspondent for politco, anna palmer. thanks very much. a former united states marine held in russia and accused of

spying. now there's word that the u.s. ambassador has met with him. we'll look at whether vladimir putin is just trying for some pay-back next. you always pay your insurance on time.

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>> trace: that's a live look at the white house outside the west

wing. the president and top lawmaker from both parties are inside the situation room trying to resolve this 12-day partial government shut down. big sticking point here of course is funding for the border wall. no cameras allowed inside the situation room. so when they come outside, you'll see the microphones there. we will bring that to you live. meantime, secretary of state mike pompeo says the united states may demand the immediate release of a former marine in moscow if the detension is not appropriate. officials in russia accuse paul whelan of traveling to moscow for a spy mission. his family says he was there for a wedding. benjamin hall reporting live with the latest. >> the first anyone new that paul whalen had got missing is when he failed to show up for the wedding. whalen served two tours in iraq.

he's worked in corporate security for borg warner. his family has denied he has anything to do with spying. the rush federal security service announced his arrest on the website three days after whalen disappeared. they said only that he was caught during a espionage operation. earlier we heard from secretary of state mike pompeo who addressed the case. >> we've mad clear to the russians our expectations. if the detention is not appropriate, we will demand his immediate return. >> we've also heard that ambassador huntsman has been to visit paul whalen. he spoke to the family as well. this spying charge comes with a 20-year possible sentence. trace? >> trace: what does this mean for u.s.-russian relations potentially?

>> very hard to know how this will play out at this point. relations between the two countries have been at a low point recently. a few weeks ago, a russian citizen in the u.s., maria boutina admitted to acting as a secret agent on behalf of the kremlin. some experts are now saying this arrest is in response to that. u.s. and russian relations have deteriorated greatly in the last few years after the former spy being poisoned. putin said russian would never arrest an innocent person. that seems to be exactly what happened here, trace. >> trace: thanks, benjamin. want to go back live to the white house. there's signals here as we told

you the past hour, that's outside the west wing. congressional leaders meeting with the president about border security. the big sticking point in the shut down. now indications that mike pence's motorcade has pulled out meaning the meeting could be wrapping up. we'll get to that on the other side of the break. percent of your home's value. 0 the newday va loan lets you refinance your mortgages, consolidate your credit card debt, put cash in the bank, and lower your payments over 600 dollars a month. call today. and get the financial peace of mind every veteran deserves. go to newdayusa.com, or call 1-877-806-8332.

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>> trace: a back now to the partial government shut down and the battle over the border. president trump meets with congressional leaders. let's bring in chad pergram. getting some indication that the meeting might be wrapping up after 50 or so minutes. what do you foresee? resolution? stalemate? give us your insight? >> i talked to a senior house republican member that said that they thought the president was going to stand firm and that we might be in for the longest government shut down in history. the next movement here is going to be tomorrow when the democrats control the house of representatives. late tomorrow afternoon, they'll pass two bills. one to deal with six of the

appropriations bills, which are outstanding and a separate interim bill to fund the government. the department of homeland security through february 8. now, democrats will try to put some pressure on senate republicans and say wait a minute. those are the same bills that you moved across the senate floor or in committee. we passed them here in the house. we don't we continue to fight about the department of homeland security and deal with it in february. let's reopen that part of the government. i'm told by senior republicans that's a terrible built of strategy because then they lose all leverage. nobody thought anything would be resolved today, this is the first time that chuck schumer and nancy pelosi, we're hearing from the president before christmas. we have not seen paul ryan lately, we haven't seen kevin mccarthy. ryan won't be in congress tomorrow at noon. he's basically washed his hands and absolved himself from this

situation since the government shut down about 12, 13 days ago. >> a great point. 22 days, the president has had zero contact with pelosi or schumer. what is the sweet spot, chad? you're talking to people up there. the president said earlier, there were reports that $2.5 billion might be a red line. is there a sweet spot for both sides that maybe we can see some kind of resolution the next four or five days? >> this is where we're starting to hear chatter last week that bipartisan senators thought there might be a deal on daca. now the government shut down is real, government workers are off the job. there's no holiday recess, members are coming back to session, that might help force the issue. sometimes you have unconnected issues that help resolve these partial government shut downs. nobody thought that anybody was going to come out of this until nancy pelosi gets control of the gavel, tomorrow afternoon,

probably 1:30 and 2:00 and the democrats take their first vote to reopen the government, their plan, not a bipartisan plan, but their plan to reopen the government and make it a point that one of their first votes in congress was to turn this around on president trump and say it's your shut down. we voted to reopen the government and we did not reward you with any new border wall funding, trace. >> trace: chad, i have to go. who does this benefit? the longer the government stays partially shut down, which side benefits? >> well, republicans can try to turn this around on nancy pelosi. they used this playbook before. she's the speaker of the house and she owns it. that's why republicans on capitol hill were trying to absolve themselves this past couple days because they can say wait a minute. she bears some of the responsibility despite what the president said. she's the speaker of the house. they used this tactic against her before and they're going to try to do it again. >> trace: chad pergram here with us. thank you. i want to go to the dow.

it was almost even. it's down about 30 points. if it's not down 400 these days, that's good. "your world" with neil cavuto is next. >> neil: all right. it's crazy markets got you down? there's a pill for that. here's the thing. it's going to cost you. prices on hundreds of prescription and other related drugs are set to soar this new year. industry defiant besides a president who wants to bring them down. i'm neil cavuto. want to thank my friends and cold leagues, trish and connell for filling in when i was out, which is why i rushed back. happy new year. you just might need a pain reliever after hearing this report. we have more on the big hikes w