♪ o israel hell ee rbg i'm kelly wright. welcome to a brand-new hour. >> heather: i'm heather childers. topping the news this hour. >> christmas eve mass is under way at the vatican. and thousands of pilgrims are on hand at basilica to hear pope benedict xvi. >> heather: showdown over the payroll tax cut had repercussions for 2012. >> and stunning development in virginia. failing to make the primary ballot.

peter doocy has more from washington. >> to get on the ballot for the virginia gop primary you need 10,000 signatures including 400 from all counties in the state. governor perry and gingrich didn't do that. they will not be on the ballot in virginia. now front runner newt gingrich only a failed system excludes four out of six major candidates seeking access to the ballot. voters deserve the right to vote for a candidate. we will work with the republican party of virginia to pursue an aggressive write-in campaign to make sure that all voters are able to vote for the candidate of their choice. perly campaign is looking at the law whether an appeal or challenge is warranted. they say it's an isolated situation and it won't affect the governor's ability to get on the ballot in every other state. as for gingrich, it's not good. >> if you can't organize your

campaign to meet the filing dleachbs, it's the fundamental thing you do. >> reporter: the university of virginia, center for politics larry sabato, says that ours found out only two campaigns how it would take compete organizationally. that would be romney and paul. virginia has 13 electoral votes. president obama won the state in 2008. >> kelly: many people might be wrong if s this gaffe going to change the republican field. we will ask campaign manager susan estrich when she joins us live at 6:00 p.m. eastern. >> heather: in a political pressure cooker the house yesterday passing a two-month extension of the payroll tax cuts for 160 million americans. house republicans retreating saying the bill was simply unacceptable.

opponent supporters is calling it a political victory as president arrives in hawaii for his christmas vacation. live from honolulu, this vacation, maybe a brief respite of the payroll tax holiday, right. >> reporter: it looks that way. listen you've got to give round one to the potted this. this was a victory for him. he is able to savor that along with the setting here in hawaii. just before he left washington, he did sign into law the two-month extension of the payroll tax holiday after a bitter feud with the republicans. that was the issue. how long would it last. republicans were pushing for a full year. president wanted two months. the president ended up winning. as the president pointed out they will have to revisit in 2012. >> last week i said this should be a formality. that is still indicates. let's make sure we extend the tax break and unemployment

insurance for a full year for our families but also for our economy. it's the right thing to do more money spent by more americans means more businesses hiring more workers. >> reporter: looking ahead this is not just a formality. this will be another big fight heading into 2012, the question is, if you spend the payroll fax roll for the full year, how do you pay for it? >> heather: always the question how do you pay for it. what kind of reception is he getting there in hawaii? >> they always get a warm reception here. last night a lot of heads were turning along the beach because the president's motorcade and they went to one of their favorite restaurants with friends. beyond that they are afforded a fair amount of privacy. obamas have been coming here for years and hawaii took the

attention on a stride. >> heather: looks like the weather is great. >> reporter: you don't want to push things too far. we are working very hard here. it's beautiful. >> heather: thank you very much. doug is reporting live from hawaii. >> kelly: you got to wonder if he is wearing shorts or not. let's go back to the top. a party divided. that should could provide president obama and the democrats a much needed boost heading into this election year. now some suggest the gop majority in the house might even be in jeopardy. jamie weinstein senior editor of daily caller. so what do you think. does the gop have a problem on it's hands? >> look, certainly they didn't handle this quite well. it wasn't good coordination between the house and senate. i don't think this is an issue

they should have fallen on their sword over. they gave him a messaging victory and he said he was fighting for he called a tax cut which is tax holiday. they gave him a victory but nothing to call out a parade over. >> kelly: having said that. which party do you think benefits the most from this deal? understand, in a few weeks they will be right back at it again? >> initially the president does, he got what he wanted. there is in this deal, something that might be a point politically. he has to make a decision on the key stone excel pipeline and this is something he tried to push after the election because many people on the left in his base don't like it for several environmental reasons. they are going to force him to make a decision on this. either way he plays it, he could

be hurt. he could be hurt from his base or upset that he supported it. if he doesn't support it the republicans will have an issue to say, this is something where you could have had 10 to 20,000 jobs to be created and he decided to not go for it. >> kelly: the president has been doing a lot of negotiating in the past and it appears the negotiating won over so we may see compromise on the keystone pipeline. he wanted to push off until after the election sometime in 2013 to make a decision. republicans are somewhat getting their wish by putting that into the plan for the first two months. they are going to come back and start fighting all over again. what might we see? it might be just full out war. >> what would be smart for them is not to make an issue as i said they fell over the sword over. it's an historic election where

serious issues are going to be debated. this is not one of the major issues that needs to be fought over. there are ideological issues, over tax cuts, over the health care law and what i believe entitlement reform which is the number one facing in the long term picture. they might be on the right side of the issue, in the grand scheme long term is incon consequential. >> kelly: john boehner, what does he face returning from the christmas recess. >> there were some people as recently tea party elected republican weren't happy that he caved to pressure. we'll see how angry they are over this. if this is something they become bitterly opposed to him over. there has been some off the record comments of tea party members that are very upset. we'll see what it translates into actual terms. >> kelly: they are saying john

boehner caved to pressure. mitch mcconnell had struck this deal. did he really gave cave to pressure or giving the american people something they wanted to make sure 160 million americans did not see their taxes going up starting january 1st? >> it would have been strategic ri unwise not to come so some sort of agreement to have the taxes raised, even though two-month extension was silly but not to come to some sort of deal would have hurt republicans and would have hurt americans. it would not have been a smart move. >> kelly: and also kicking the can down the road as we have heard over and over. same old song from congress right now. in a you few weeks we'll see them getting back to dealing with this again. we thank you for why your insights. you will help watching this as they return and start dealing with this all over again. thank you. >> heather: in russia, a massive

display of public anger. accusations of voter fraud bringing tens of thousands of demonstrators to the street in moscow calling for a dispute election to be rerun. it's adding to the pressure on vladimir putin as they are calling for him to resign. jessica, protestors aren't the only ones asking for putin to step down, who else is? >> m bor bor make a big announcement and he called on him to step aside and it's time for him to go. it's basically what many of the demonstrators are saying. they feel like they don't have a voice. he has been in power for such a long time and if he is elected next year, he could be in power for another 12 years they are

tired of his authoritarian style >> heather: jessica, does this really put pressure on putin? what is the next step. what happens next? >> the next step is for putin to come out amake a response. earlier in the week in his first comment during the protests. he basically knocked the protestors. he hasn't really been the type of person meeting the demonstrators' demands. on the other hand the president has come out and said there will be a russian reform but the problem is demonstrators do not want election reform after next year's elections, they want them now. they are saying kremlin promises things that it can't deliver. so it guess now the ball is in

the kremlin's court and protestors continue to demonstrate until their voices are heard. they are planning a million man march if they don't get what they want. >> heather: jessica, thank you so much for do joining us live from moscow. the protests being called the largest public outrage since the protest 1991 that brought down the soviet union. that is what is happening in moscow right now. >> kelly: winter weather making a mess on the roads for some christmas travelers. crews in wisconsin are clearing highways out there. there were several accidents on highway 29 north of madison, including one that sent a car skidding into a ditch. snow in texas is stranding several hundred travelers at an el paso bus station. problem is so bad it is jeopardizing travel plans. >> it's extremely frustrating.

i was going to see friends and family. good chance i'll not be half of what i planned to do. >> kelly: that, indeed, is a tough situation. a situation so bad that the salvation army showed up with supplies. red cross helping those stranded finding proper shelter. >> heather: christmas celebrations are underway at the vatican. thousands of pilgrims filing the aisles inside the basilica. moments ago pope benedict xvi gave the christmas eve mass. you are looking live pictures. gregg burke is live in rome for us. greg, what is the pope's christmas message? >> i think we'll know more in 15-20 minutes when he gives his homily during the mass. we got some inkling earlier this week, when he talked about the

joy that faith gives people and danger when people try to live their lives as if god didn't exist. pope will speak on christmas when he has worldwide audience. he talks about the plight of christians that are being persecuted. so i expect we'll hear about christians in other parts of the countries of the world. but i think that is one of the things there and the pope this evening he put a candle out on a windowsill reminding people to pray during this christmas period. >> heather: he is almost 85 years old. how is he holding up? >> that's right. he will turn 85 next april. he seems to be holding up all right. they tried to make his life easier with some of the appointments. when he came into this mass

about five minutes ago he was rolled in. he used to walk in, but it's a big church. anybody who has been to st. peters knows that and they have a device they bring in him. i call it holy roller, that is not very nice but that is what i call it. it makes it a bit easier. he seems to be doing all right somebody that is 84. he has a trip planned to cuba and mexico but overall i think he is pretty good. >> heather: i heard the pope speak there, it was pouring rain, but there were thousands and thousands of people there from all over the world. such a moving message. now, what happens tomorrow. pope benedict xvi has a big day tomorrow. >> reporter: st. peter's is limited. what you are seeing, 10,000 or 12,000 people that can get in the mass. tomorrow is the square and

overflow. they will come at 12:00 local, 6:00 p.m. on the east coast. he gives his christmas greetings saying merry christmas in more than 60 languages but then also a little bit of a deeper message to talk about what is going on around the world. so that is followed research here in rome. people coming and watching in person. then, of course, worldwide, as well. everybody hooked up on television. >> heather: we appreciate you covering this tonight. mer ri christmas to you. >> he called the pope a holy roller. i like that. >> our thoughts were the armed forces celebrating christmas far from their families. from the looks of things they have tasty foods to look forward to. they are preparing a feasted at kandahar in afghanistan. president obama and first lady

talked about it during the president's week's address. elizabeth and three children flying by helicopter to the hospital outside of london, prince charles and his wife camilla, they arrived by car. prince philip was taken to the hospital yesterday suffering from chest pain. doctors inserted a coronary stent after finding a blocked artery. they are declining to say if philip suffered a heart attack. he has been in good health throughout his life. new concerns for the world's most important supply route. iranian ships streaming to the straits of hor murz. we'll talk about what the war games mean. >> heather: a stunning development in the presidential

race, major candidates denied ballot in a key battleground state. our panel weighs in. [ alarm rings ] [ male announcer ] take the fixodent 12 hour hold challenge. fixodent denture adhesive challenges you to a 12 hour hold test. ♪ thanks to its time released formula, you apply fixodent once, and it holds all day. ♪ take the fixodent 12 hour hold challenge. guaranteed, or your money back. ♪ and for guaranteed freshness try fixodent cleanser, plus scope ingredients. [ woman ] ♪ what i want this season ♪ if you'd like to try and guess ♪ ♪ it is something very special ♪ i would readily confess [ dogs barking ]

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>> heather: welcome back. a few stories we're keeping an eye for you. president obama's reelection campaign and dnc returning more than $70,000 in contributions from jon corzine, former ceo of ms global is at the center of an investigation into the investment firm's collapse. >> self-proclaimed toughest

sheriff, preventing arresting people based on they are illegal immigrants. >> only few members of the last brigade are back from iraq. about 200 soldiers arrived at fort hood just in time for christmas. nice. >> kelly: maybe the last shopping day before christmas but for nearly half of all americans, the race to finish their shopping is just beginning. that is right. experts say last minute spending is welcome news for hundreds of retailers out there. casey stegall has been falling this. he a live at the grove. i see things have not changed. there is steady flow of people out there. >> a lot of people out there trying to get the perfect something a we go before the holiday. about 37 million americans had

not started a single bit of their christmas shopping as of just two weeks ago. can you believe that? and that is the stores rely on the procrastinators to selling putting out some cash in the final push. numbers are looking good. holiday spending is expected to be up about 7% compared to last year according to some analysts. internet sales have risen roughly 15%, many are finally buying more big ticket items this year to stick under the tree. >> purchasing cars, electronics, ipads, you start to see them coming off the shelves again. when consumers have the urge to spend that didn't have the confidence or capacity to spend you get pent up demand that we are finally seeing. >> typically holiday spending

accounts for 40% of retailer's total profits for the entire year. economists are quick to point out although the seasonal numbers look promising it's not an indicated they're consumers will finally open the spending floodgate in 2012. >> people are very nervous. we have an election year coming up. we have a major deficit problem to deal with. i think until this uncertainty of where the country is going economically, i think there is going to be a hold back by the consumer. >> reporter: so if you are home watching us and you are someone who perhaps finished your shopping weeks or months ago and looking at these people, what are they doing, what are they thinking? don't be too quick to judge, some of the retail experts there are better deals to be had in this final stretch as stores try to offer even deeper discounts just to get the consumers in their doors.

>> kelly: wait until the last minute. i enjoy the enthusiasm but not anymore. i can't deal with the crowds. >> heather: it is not christmas without a few carols and for our own kelly wright, you were apparently invited to perform alongside the christmas song. >> with the orchestra sometime ago. i enjoyed doing that. we want to share a little bit of that with you. it's been a lasting. here the christmas song. ♪ ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪ >> heather: you have such a beautiful voice. such a wonderful gift. >> kelly: that is our gift to you. merry christmas to you as the kids go to bed tonight, some of them will have visions of sugar plums dancing. >> heather: thank you so much for sharing that. a little girl in chicago getting an early christmas gift, as well. >> the surprising reunion when we come back. stay with us.

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>> heather: welcome back. time for the top of the news, newt gingrich and rick perry failing to qualify for the primary ballot in virginia. the republican party in the state says the candidates didn't come up with the 10,000 signatures to be on the ballot. >> demonstrators in moscow rallying for an suspected election fraud. >> and pope john paul ii kicking off christmas celebrations with a mass at st. peters sa basilica. he will give a speech later in dozens of languages. >> iran flexing its muscles launching massive naval

exercises near an entranceway to key pass way to the world's oil. the war games will go on for ten days. the big concern here is about one-third of the oil actually passes through that strategic checkpoint. brand-new pictures showing the maneuver getting under way. it could bring iranian warships klous close to u.s. ships. here is a former state department senior advisor and principal at bc international advisory. this is a very important situation right now. what are we likely to see with this military exercise that the iranians are now developing that will carry on for ten days? >> it's a pretty remarkable event because it's in the straits of hormuz but it is south outside the persian gulf. iranians are trying to push the envelope that coincides with the

time we are pulling out of iraq. i think it's more of the time of conduct you are likely to see if iran attains nuclear capability. people talk if they go nuclear, it could initiate a nuclear strike against israel. frankly think in the near term, you are more likely to see this in activities aimed at peeling away u.s. allies. raising the cost of being allied with the u.s. or intimidating other countries and bring them closer into the iranian sphere. >> kelly: i think you went to the heart of it. it's spreading the form of islam throughout the region and spreading intimidation throughout the region, to intimidate those from joining fous forces in the united states with alab allies which a very vital thing for the united states as well as the western allies. having said that, with the close proximity they will have with

the navy, might we see with incidents in 2008 with the fast boating approaching u.s. warships. could there be an incident? >> that is notable. especially using a number of boats, with iran's pen chant for suicide bombing. you wonder if they could take a carrier out. there is a bunch of military elements that is very cautionary here. we'll have less of a footprint in the persian gulf soon than we had have had before the 1991 gulf war. the bases in saudi arabia are gone. we will be relying on our navy at the time navy is down to half the size it was. ronald reagan left office, we were tied down and iranians noticed all this. when we make threats or when we make assurances to allies,

increasingly we lack the optimistically muscle to make incredible to our friends and not our friends. >> do you suggest that navy forces may be exercises could pose a threat to our security of those forces there? i don't want to put words in your mouth. i think if you look at the threats we face and forestructure, this a problem of the military. it's understandable, this is what they've been told to focus by their political commanders. we have a military that is focused very much on counterinsurgency and the bigger wars we fought in iraq and afghanistan. if you look to the next decade, big threats from china. china is feeling very expansive pushing in the south china sea. so probably you need to shift back to air force and naval procurement and we have lagged

in recent years. our navy is not procuring ships fast enough now to maintain the structure we have. >> eric: it ties into defensive budgets. what does it say about the larger issue of iran's appetite for nuclear power? what might we have to do in that situation. the president said he is leaving all options on the table which includes military, but if we are suffering in terms of our representation there and stretched too thin, what does it really suggest we should do? >> it suggests current policy is failing. secretary of defense panetta was saying we're not going to let iran get the bomb. how many times have we accepted the unacceptable? no one believes this president is going use military force against iran. on the other hand iran is clearly pursuing a weapon.

sanctions aren't working the obama approach which is predicated on iran on on one level coming in from the cold but notices working. these naval exercises show that. on the other hand you have the president saying tide of war and militants in iran and clerical rulers, saying yes, we can. >> kelly: they do want to do that. good day to you as well as merry christmas and happy holidays. >> heather: also, bloodshed in yemen, security forces opening fire on 100,000 protestors who entered the capital after a four-day march from another city. 200 others were injured. as yemen's president said he will soon go to the u.s. hoping to ease tensions ahead of elections which will happen in february. it's not clear when he will

leave. in november he agreed to hand the power to the vice president and set a timetable for resigning from office. >> this christmas is sure to be a special one for military families whose loved ones is finally home but many are having a hard time making ends meet as soldiers are find can are struggling. elizabeth has more in atlanta. good see you. >> reporter: good to see, merry christmas. so many soldiers who have given so much now they are ones in need. they say the unemployment rate in veterans is right around 11%. that being said there is still charities who are still giving. >> they are the men, women and children who have sacrificed and served our country.

this holiday season who has given so much are in need. >> they have to save every penny they get these days. >> they are fighting cancer and autoimmune disease which adds to the family's economic pain. >> the basic conception you are basically taken care of every way and we live paycheck to paycheck just like everybody else is right now. >> if it weren't for gifts and food, would be no christmas. >> it's a great relief because i haven't been able to help my family out. >> it's their mission to see military families have toys under the tree and a holiday meal on the table. >> we served 150,000 families this year alone. just for christmas i would say probably a quarter million children. >> as soldiers return home, operation home front has seen an

unprecedented need. >> america has to stand up and say we are thankful for it. >> he and his wife usually donate to the charities but this year, they are lining up to get toys for their four kids. >> i'm very grateful, very blessed they did this. this helps us make our kids have a better christmas. things we couldn't have got we could get. >> it makes us feel appreciated. >> that food drive is taking place on six bases across the nation. even those folks are experiencing tough times this holiday season they are still giving. >> kelly: great story about giving. thanks, elizabeth. >> heather: switching gears the justice department rejecting a south carolina state law to show photo i.d. when they go to the polls. we'll talk about that straight ahead. [ sniffs ] i have a cold. [ sniffs ] i took dayquil

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>> kelly: here a christmas to remember for a little girl in chicago. reuniting with her father after he spent a year overseas. she had no idea her father was back home. look at that. first stop on u.s. soil was a surprise her daughter and tears flowing. it seems there really is a santa after all. she gave grace exactly what they asked for. he was scheduled to return in the new year but he says its true christmas miracle that he gets to wake up at home on christmas day. merry christmas to you. >> heather: have a feeling listened to that little girl's wish. >> a four top republican candidates failing to qualify for the virginia presidential primary. newt gingrich will not appear on the ballot despite the latest

polls showing him leading in the state. joining us is judith miller a author and fox news contributor. mercedes cohen anddine. thank you all for joining us. >> fred: virginia is one of eleven states holding a super tuesday. we have 46 delegates up for grabs and only two on the ballot. ron paul and mitt romney, does it count? >> it counts but what does it say about the campaigns that they couldn't organize so they couldn't get virginia's minimum standards. newt has a point, when he says, how is this going to be a fair contest when only two out of the top six contenders are going to be there. it's an unfortunate situation because we want more people to

vote not fewer people to vote in the primaries. >> obviously the voters have the right to say who their candidates should be. there will be certainly. some of these top contenders aren't there on the ballot. it's infuriate together voters. >> they say newt is the smartest man in the room. the smartest man in the room has taken himself out of the race. the question is, who will the newt supporters support? will they be behind romney or paul? now its two-man race. >> they are going to try and organize a write-in, but apparently the write-in campaign is against state law. >> exactly. if they can't organize 10,000 signatures how can they organize a write-campaign. >> i think they are arguing they did meet this deadline which was 5:00 p.m. on thursday. it was a matter of paperwork and

someone dropping the ball. >> it's a matter of something, but the issue in realtime professional politics, you want candidates who want to be president of the united states to be able to meet deadlines. >> heather: it may be an indication what is going to in capitol hill right now. they are waiting for the two month extensions and things like that. >> heather: so the u.s. justice department reject ago voter i.d. law, passed by the south carolina legislature signed by the governor. the law requires voters to show photo i.d. at the polls but the justice department says it makes it harder for minorities to cast ballots. mercedes, i'll begin with you as a lawyer on our panel. any legal validity? >> i think it's outrageous, even local laws that you have carry consider i.d.

certainly someone should have some form of identification especially in the process. i'm not sure how the doj is going to rule. if you want to cast a vote you should have of an identification. that is not discrimination. that is good way to deal with it. if you look at the primary voting turnout, you have fewer than 20% of eligible voters turning out. do we really want to make it harder for people to qualify, to voted to express a preference in a democracy? >> you have to prove who you are. >> picture i.d. >> people use ids for base can transactions, to buy cigarettes and alcohol. it's not an economic hardship. some states are offering it for free. this is a really bad argument. i think the obama administration is playing the race card. just like they are playing the

class warfare card because obama has nothing to run on. and they are trying to drum up any minority voters by whipping up emotions. >> you will never believe what one woman claims that tsa claimed as a possible explosion i have. you definitely want to hear this one.

>> heather: following that happy festive music. tsa agent confiscated ago cupcake at out of concern it could be an explosive. worker reportedly telling the passenger that the frosting could violated tsa restrictions. let's bring in our panel. >> could someone knock on them and say are you kidding me? you almost want to say i'll take a bite of that. >> they apparently to give the woman to go to side and eat the cupcake. apparently the cupcake is in the jar for safe travels, but it didn't make it through. >> tsa clearly has a big problem here. they have become the grinch that stolen christmas. >> take all the joy out of

christmas. >> but they usually have a reason to confiscated stuff and they should explain why they are doing it. as soon as an incident like this happens, we nor the creating this. this is why it's done. then americans understand it and they'll go with it because nobody wants to be blown up in an airplane. >> listen they have everything backwards, tsa. they ridiculed this woman for her sex toy. recently a rapper was found with potted in his luggage. they let him keep it and they are frisking grandmothers in wheelchairs. come on. >> so i love you all. [ laughter ] >> heather: christmas last minute holiday shoppers, they help bring in millions of dollars for u.s. retailers but it led to scenes like this one. crowded stores filled with

frantic shoppers, some breaking out into fights. the story is out of hand and people fighting and shooting over the tennis shoes, michael jordan if tennis shoes. >> there was a line. the line was like 200 for the next day. it was incredible. it was unbelievable. this is the first year they actually had thanksgiving day shopping on the day itself. so instead of being with your family or turkey, whatever you eat, you were in line. i think it's gotten totally out of hand. we're forgotten what this holiday is about. >> it's really gotten out of control. i hope people come to their senses. >> heather: on the other hand, it is good for the economy, but national retail federation, numbers were like 3.89% increase in shopping expected for this

holiday season. that is good news. whether people actually have the money that they are spending, that could be another problem. >> and all the problems come back, a lot of people turn back things in. >> but it's out there. >> the economy is inching eighth way up and consumer confidence. that is why there is so many shoppers. >> so it's christmas eve. what are you doing? >> i'm getting on the train and i'm going to have dinner with family. >> heather: very good. >> i'm going to be kids and nephews. >> family and looking forward to it. >> heather: i'm headed to north carolina on flight with the wonderful tsa. [ laughter ] >> heather: if i had home maze icing, it would be a health risk. none of that for me, but i will be home for health but back tomorrow night. thanks everyone and merry

christmas to everyone at home. kelly, merry christmas to you too. >> kelly: ladies i could listen to you for another hour, but i do have some cupcakes for you. gregg jarrett and patted pat will be here for another full hour inside america's news head inquiries. >> coming up a special christmas edition of the five. bye everyone. have fun with your family. capital one's new cash rewards card

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