shake-up in the gop race for the white house. there is a surprise just about every day in this race, isn't there? jenna: luckily happens during our hour we appreciate it. jon: rick perry gets ready to call it quits. the expectation he will endorse newt gingrich. but who knows there has been a lot of surprises this campaign season two days before the south karlt line primary. good morning, to you, everybody, i'm jon scott. jenna: i'm jenna lee the question we'll talk about at this hour as you take a live look at the podium. we're moments away from a rick perry news conference in south carolina. it is expected he will drop out of the presidential race. bret baier, anchor of "special report" will join us. about timing of all this what it all means overall to this race. this is one primary on saturday, an important one, but remember there is a long road to november. joining us now john roberts in charleston as well to tell us a little bit about what is really going on today there, john? we can't forget we're a couple days away from

saturday's voting. >> reporter: yeah. this really shakes everything up. the way that it was those three people, gingrich, santorum, and perry were splitting a very, very similar vote. that was evangelical an conservative vote. with perry getting out there is question where the voters will go. will they go monolith i canly to newt gingrich which typically doesn't happen in situation like this or some potentially go to mitt romney. i talked to south carolina governor nikki haley a little while ago, she was optimistic some of those voters would go to mitt romney. there is a big push on beginning today as the southern republican leadership conference begins to get the values voters out to the polls. the question, how many of those people are going to go to newt gingrich? you know, what happened in 2008, if you look at the election in south carolina then is, those voters really split between fred thompson and mike huckabee and allowed the moderate john

mccain to run up the middle. will that happen again here in south carolina on saturday? nobody is quite sure then there was i guess they were calling a conclave of evangelical and conservative leaders in texas over the weekend. the consensus coming out of that meeting these people would get behind rick santorum. they were going to do what it took on the ground in south carolina to boost his candidacy. but not long after that say, well wasn't the consensus everybody said it was. there were a lot of newt gingrich supporters in there. i talked to j.c. watts, former congressman, ardent supporter of newt gingrich. he says you know, you can't get these people all on one page but he believed the momentum was really going towards newt gingrich. jenna, we'll see how this all plays out over the next 48 hours. no question as we await rick perry's announcement the dynamic shifted considerably in the palmetto state. it could shift dramatically in newt gingrich's favor. he needs a couple, three more points and he is in the

margin of error in most polls and that puts him close to governor romney. jenna: that's right, john. you see one headline today, jon scott, you're on set with me. there are too many johns around. all good johns by the way. headline puts gingrich quote, unquote, within striking distance of romney. jon: that is what is so having about the timing of per rid's announcement. you remember after iowa a lot of people thought perry was done but he announced no, i'm going on to south carolina. he thoughth would be his firewall state. clearly, john roberts, he has seen the handwriting on the wall. he has not generated excitement among south carolina republicans, polling at 4 or 5%. so by getting out now he is able to throw his support to somebody. we presume it will be newt gingrich. that could put gingrich over the top in south carolina, a state, john, that has picked the winner of every republican race since its primary began this what,

1980? >> they certainly like to be king makers here in the palmetto state. it is true what you say, john. don't forget rick perry announced his candidacy in south caroline. it was back in august. suddenly he shot to the top of the polls and wow he is presumptive nominee. and how things change t was debate performance in the november when he had his oops moment, that had people taking a serious second look of rick perry. when he came out of iowa he said i'm growing back to austin to assess my campaign, most astute political analysts said that is it, he is out. is dead. he will not rest sure rent himself in any other state. he came back six or eight hours later i'm back in it to win it. i'm going to south carolina. he spent literally all the time between iowa and south carolina to move the numbers much. he was thinking about it but jon huntsman cluttered the stage with his announcement.

if he had gotten out on tuesday after gingrich's huge performance at the fox news debate and said i'm throwing my support behind newt, maybe there would have been a bigger bounce for newt gingrich. not sure what it gets him with only 48 hours left. let's see. south carolina voters as carl cameron pointed out they're feisty, they're independent. they don't like to look to the results of any other state when making up that minds. they could take the announcement with rick perry we'll go with rick perry and rally behind him and go with newt gingrich. the film side is perry never made that much of a presence in south carolina. jon: john roberts in north charleston. thank you. >> reporter: why so much fun, yeah. jenna: the rest of the day on fox news, he had the great interview with the governor nikki haley which he mentioned. we'll show you parts of that. in the meantime as you can see a live picture of where we expect governor perry to make this announcement. bret baier joining us from

washington, d.c. bret, if one more person walks behind that podium, at this point there is lot of false starts. as soon as we see governor perry we'll got to that announcement. but, bret, why now? how do you answer that question of why now for governor perry? >> well, i think he looked at the polls. i think he looked at the positioning. i think he looked at the prospect of another debate. he said this is the place and tile he could have the most impact. listen, newt gingrich has been in communication with governor per perry for the last couple weeks. they have had conversations. there was a meeting on wednesday at a event they were at and there has been communication between the gingrich and perry campaigns about this. so this has been talked about for some time since iowa and i think there was a thought that this could make a difference. even if perry was polling at 5%, 6%, 7%, that potentially

could make the difference for newt gingrich if you look at the latest polls where he is closing in on mitt romney. now, this also comes at a time where it deflect as little bit of the attention from what is expected to be a big interview that is on abc with maryann gingrich. i know you talked about it earlier. it is likely to make a splash and perhaps this is a good thing for the gingrich campaign in that respect as well. jenna: interesting. we've talked many times, bret, about the independents and the undecideds in these races. you can see how one news item or one headline may have potentially to affect the outcome in south carolina. you mentioned communication between the gingrich and perry campaigns, is that typical? is that typical of a race like this to see that type of communication? >> well, it is not too typical but when you have two campaigns heading to the

same spot and they're kind of fighting for the same votes and one of them is doing a lot better than the other one, it's, it does happen. this was communication that individually from the two candidates they had talked to one another. iowa, even before iowa and then after iowa. and then there was a meeting wednesday we're told in which the two talked. apparently the decision was made by perry officially last night and, and there were some back and forth inside the campaign, not knowing exactly what the decision was. which is really what we saw after the iowa speech where a lot of people thought he was going back to texas to hang it up and end the campaign there after his iowa finish. and then, that tweet came out, with governor perry running, saying on to fight in south carolina and it took some of his texas staff by surprise. so i think you'll see a

speech today in which a candidate, where jon mentioned, i went to the top of the polls and remember that august 13th, he just shot to the top. he really squelched michele bachmann's straw poll win in ames and it was really believed on paper that governor rick perry was the best candidate and he was leading mitt romney by double digits. and then the debates happened. other events happened and he lost a lot of steam and it's an amazing run for this candidate who after the iowa finish gets out today, likely with a speech that will be about pride and going back to texas proud of the job that he's done. jon: as you mentioned bret, at the highest point in the polling he was getting 32% of the vote and what a journey it has been. one of the other news items that came out unrelated to this, we see that indiana governor mitch daniels will be making the gop response

to the state of the union address for the gop come next week. i'm just, on a broader perspective, do you think that this, this race is settled, as far as the gop candidates? do you see anyone, entering late into this race? >> you know, if there is any race where you could say it's not settled, it's this one but i think the candidates are the candidates. i still think it's hard to imagine another candidate getting in or this thought of a brokered convention where someone would then, you know, be nominated really on the floor of the convention in tampa. i don't see that scenario. some people do. and some people are talking about a mitch daniels reconsidering his decision, the fact that so few delegates are really distributed in the beginning part of this process with iowa, new hampshire, south carolina and florida. you're talking about just a small percentage of the

overall 1174 delegates needed to take the momtation -- nomination. is it physically possible, is it logistically possible? yes. is it possible for the candidates that we believe we're considering? i don't think so but this race has shown there's a lot of things that can happen. jenna: leaving that slim opening, that slim opening, bret. >> right. jenna: we'll still be talking a lot about this for the next several weeks and months. i know you are for sure on saturday for the special coverage. bret, if you would stand by, we got a two-minute warning for governor peshry. we expect him to come out shortly. jon: one of the interesting questions is what happens to his political future now. he is midway through his third term as governor of tex sags -- texas, the longest serving governor of this state. he will be up for re-election if he should decide to do so. texas has no prohibition a governor can serve. he could run for re-election

for governor of texas if he so desires. if he wants to do that he will certainly have funds at his disposal. the last indication our brain room could find, he had raised $17 million for the presidential campaign. he had 15 million left as the third quarter ended. it is believed he has about the 3.5 million remaining now. and that would be available to him in another run for governor. here now, the governor of texas, rick perry. the question is, who will he endorse? >> thank you all for coming out and and particularly to my incredible staff that's here. i just want to say thanks to each of you for the work that you've done. mara, you and rick, victoria, y'all are awesome. lson, thank you. and it's been a real privilege to be able to learn and to grow under, under your work. as i stated numerous times during the campaign this

campaign's never been about the candidate. it's, i ran for president because i love america. i love our people. i love our freedom and, as a matter of fact, this mission is greater than any one man. as i have traveled across this great country, starting here in charleston, going to new hampshire and to iowa, california, down into florida, numerous states in between obviously. i discovered this tremendous purpose and resiliency of our people. they have never lost hope despite the circumstances that we find ourselves in. they hadn't stopped believing in the promise of america. they haven't stopped believing in the american dream. americans are down but we can never be counted out. we're too great a people for that. what's broken in america is not our people.

it's our politics. and what we need in washington is a place that is humbler, with a federal government that is smaller so our people can live freer. i entered this campaign offering a unique perspective, a governor who had led a large state leading the nation in job creation. an executive leader who had implemented conservative principles. a son of tenant farmers who was born with little more than a good name but who has experienced the great opportunity and freedom of this country. but i have never believed that the cause of conservatism is embodied by one individual. our party, and the conservative philosophy, transcends any one individual. it's a movement of ideas that are greater than any one of us, and we'll live

long past any of us in our lives. as a former air force pilot i don't get confused. i know we can't lose track of the ultimate objective in carrying out our mission and that objective is not only to defeat president obama, but to replace him with a conservative leader who will bring about real change. our country is hurting, make no mistake about that. 13 million people out of work. 50 million of our citizens on food stamps. $15 trillion national debt and growing. we need bold, conservative leadership that will take on the entrenched interests and give the american people their country back. i've always believed the mission is greater than the

man. as i have contemplated the future of this campaign i have come to the conclusion that there is no viable path forward for me in this 2012 campaign. therefore today i am suspending my campaign and endorsing newt gingrich for president of the united states. i believe newt is a conservative visionary who can transform our country. we've had our differences which campaigns will inevitably have. and newt is not perfect but, who among us is? the fact is there is forgiveness for those who seek god. and i believe in the power of redemption for it is a central tenet of my christian faith. i have no question that newt gingrich has the heart of a conservative reformer, the ability to rally and captivate the conservative movement.

the courage to tell those washington interests to take a hike if that's what is in the best interests of our country. as a texan, i'm never shied away from the a fight particularly when i considered the cause to be righteous but someone always admired a great, if not the greatest texas governor, sam houston, i know when it is time to make a strategic retreat. so i will leave the trail, return home to texas, wind down my 2012 campaign and i will do so with pride knowing i gave fully of myself of a cause worthy of this country. as i head home, i do so with the love of my life, by my side, a woman who makes every day good when she is

there by me and that's my wife anita. love you. honey, thank you for all you've done. she has been an incredible patriot during this process. also want to thank my son griffin and his beautiful wife meredith. sydney who is not with us here today. but the fact is with a good wife, with three loving children, and a loving god, who is in my life, things are going to be good no matter what i do. i'm proud of the policies we put forward to the american people and i believe that we provided the right path forward for our party and our nation. overhaul washington. providing, i think the road map for that.

proclaiming the 10th amendment and all the goodness of allowing the states to be more competitive in the local governments. creating energy and energy security, energy jobs and energy security. cutting spending, eliminating these unnecessary federal agencies. cutting taxes to that flat and simple 20%. and i will continue to fight for the conservative reforms because the future of our country is at stake. and the road we're traveling today, president obama's road, is a very dangerous one. i want to thank some wonderful individuals who i have come to know and admire and who have stood by my side in the this state. kate dawson, thank you for all the work you've done and just being the loyal supporter that you've been. a strong and a good man in

the united states congress, nick mulvaney. ambassador wilkins, i talked to all of them this morning and i want to thank my supporters, the men and women who have come across the country to be here in south carolina. they were in new hampshire and iowa. god bless you for loving your country, for, you know, for volunteering and being here and making a difference. in particular i want to say thanks to governor bobby jindal who has been a fabulous spokesperson. steve forbes who i, as i know him more i admire him greatly. what a fabulous patriotic american. and governor sam brownback. senator jim inhofe. congressman linda miller and congressman sam graves. all great americans who we have come to have such great respect for and reflect

their love of country. and i want to say a really special thanks to three distinguished veterans who have joined me on the trail. medal of honor resipient mike thornton. mike spent the last two days with us as we traveled across south caroline. navy cross recipient marcus latrel, thank you, brother. i appreciate you and mel coming to be with us today. my christian brother up in greenville and traveled so many miles with me, young marine captain dan moran. they truly represent what is best about america. who give of so much of themselves and they have been uplifting for me as a citizen, as the

commander-in-chief of texas forces. again they are truly my heros. you know i began this race with a sense of calling. i felt led into the arena to fight for the future of this country and i feel no different today than i did then knowing a calling never guaranties a particular outcome but the journey that tests one's faith and one's character. so now the journey leads me back to texas. neither discouraged nor disenchanted but instead rewarded highly by the experience and resolute to remain in the arena and in the service of my country. our country needs bold leadership and real transformation. our country deserves that. we must rise to the occasion and elect a conservative champion to put our nation

back on the right track. and this i know. i'm not done fighting for the cause of conservativism. mast i have just begun to fight. god bless you, god bless this great country of america. thank you coming out and being with us today. [applause] thank you, brother. jon: he suspends his campaign but he has not, he has just begun to fight in the battle of conservatism. texas governor rick perry bailing out of the race for the 2012 republican nomination and endorsing newt gingrich there. let's talk about it with steven largent, political reporter at the spartanburg herald journal. in the past few days mitt romney had been widening his lead somewhat over newt gingrich, if my reading of the polls is correct. what does this perry

endorsement do to that equation? >> well, some of the polls that came out yesterday actually showed newt gingrich closing the gap a little bit of the most of them have the lead at about 10 points now. but, what it does, it is one less candidate to split the vote among the anti-romney vote. and he didn't have a lot of traction here in south carolina, particularly in the up state but anything that, you know, minimizes that split between the non-romney candidates for gingrich is a good thing for him going forward. jon: he was polling at about 4%, governor perry was, in south carolina. does one assume that all of those, you know, 4 percentage voters are going to newt gingrich because of governor's endorsement or some might go to rick santorum, maybe ron paul or mitt romney? >> we don't know what is going to happen but generally voters don't move monolith i canly like that following an endorsement.

a lot of support for governor perry were evangelical voters and they very well could have reservation about newt gingrich for some of the same reasons that governor perry just alluded to in his speech. we don't know what's going to happen of some of them could go to santorum. some could go to governor romney. jon: yet there is still a lot of resistance to governor romney in south carolina, isn't there? >> there is though, there has been some surprising numbers have come out in polling of the tea party here and also a poll that came out this morning from "politico" that broke the, broke the poll down by region. governor romney was only two points behind newt gingrich here in up state of south carolina which is area that newt gingrich really will have to do very well in order to upset governor romney here if he wants to have any kind of chance. jon: looks like it is going to be a horse race, maybe a photo finish between governor romney and newt

gingrich especially with this gingrich endorsement today by rick perry. much has been made, we talk about it on this channel all the time of south carolina's record picking the person who vent lay goes on to win the republican nomination. what do the voters there actually think about that record? >> i spoke to a couple of people about this yesterday at a romney event. they told me that really don't worry about that. that does not affect the way they're going to vote on sat day -- saturday. i talked about it with some strategists, some gop strategists. even they admit it is kind of a record that the establishment gop really cares about more than the your average voter. jon: all right, thanks very much much, steven largen from the start tanburg harold journal on the west side of the state. thanks. jenna: bret baier, what could be described as a strong statement from governor perry. what stood out most to you? >> jenna this is why he did

it, this is why he did it today. he did it with grace, he did it with dignity and he did it with eloquence. after all the ribbing from pun dates all over the -- pundits from all over the place he exited the race with pride. he did so with a full-throated endorsement of newt gingrich which he spent a little longer than jon huntsman did endorsing mitt romney. he was very forceful saying, newt is not perfect. who among us is? but he believes in forgiveness and redemption. that is a key moment for the gingrich campaign ahead of what will be an explosive interview from maryann gingrich, his second wife. rick perry exits this race with this speech with a lot of his supporters saying, if that speech and the last three debate performances had been the first speech and the first three debate performances this could be a much different race today.

this is why he did it and he did it by all accounts very well. jenna: quick final thought on this. you mentioned a conservative philosophy, conservative leadership and of course that referenced to forgiveness for those who seek god which you're pointing out directly could be because of this interview that we're expecting from abc with maryann gingrich, newt gingrich's former wife. is that debate over the conservative candidates still alive and well in a place like south carolina where you you still have the strength of evangelicals? are folks still wondering who the conservative candidate is in this race? >> sure. and there's a battle between gingrich and santorum there is no doubt about it. it appears in south carolina gingrich has a head of steam and that will continue that momentum. this endorsement as bold as it was and clear-cut as it was from rick perry, you know, i disagree with the previous guest, i think it could move the ball a little bit more, even if it is 5, 6,

7% that is significant. it is much more significant that rick perry endorses newt gingrich with that level of support than it was that jon huntsman endorsed mitt romney just in the big scheme of things when you talk about consolidating conservatives. jenna: very interesting, bret. the broader question as well is this the last we hear from governor perry, certainly not texas but from a national stage. we'll talk about it in the future. lots to talk about the during the day on "special report". >> thanks, jenna, big in politics a lot of fingerpointing after the white house blocks the controversial keystone pipeline project. the president blaming decision on republicans. republicans say the president is causing americans thousands of jobs. we're live with update on the controversy. we're with we're live on coast of italy with developments on the cruise ship disaster. we're hearing more from the captain of that doomed ship as well in a new audiotape.

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can you enjoy vegetables with sauce and still reach your weight loss goals? you can with green giant frozen vegetables. over twenty delicious varieties ha sixty calories oless per serving and are now weight watchers-endorsed. try green giant frozen vegetables with sauce. jenna: welcome back, everyone. a fox news alert. in italy the search resumes for 21 people still missing in the cruise ship disaster. divers return to the sea in the shipwreck off the tuscan coast. you are looking at live pictures the boat is up close to it. obviously they're still working. it is twilight. that can also be an obstacle. among those missing, two americans, barbara and jerry

heil of minnesota. family and friends holding a vigil for the couple's safe return. gregburg is live in italy with the very latest. greg? >> reporter: hi, jenna. this is such aed is and crazy story. one thing to take risks if you're sailboat by your civil. another thing to have 4,000 people aboard. we see some relatives of those missing around town and it is hatter breaking. today a lot of search-and-rescue going on. they were taking advantage of calm seas in order to get to difficult areas of the ship while the seas are calm and the ship is not moving there. is rougher water expected tomorrow and over the weekend. they say they could be as much as six foot waves. that is risk for that ship as, for both the searching in there and also for the fuel as well. now what a mess. the captain is in. just keeps getting in. francesco schettino, telling the magistrate who

questioned him yesterday. which in italian means he was driving manually with what he saw out the side of the ship, out the window of the ship and not using of course very high-tech navigating equipment. he said he was doing this because he had done it three or four times before. so he also admitted that he turned too late. the company has suspended him. and finally jenna, a little bit of good news every once in a while for the story. the number of unaccounted forgone up and down. went down a notch. a german women notified people, notified authorities saying she was very much accounted for even though she was on the list of missing. jenna. jenna: we'll continue to watch the story, greg. incredible pictures. so many days after this accident happened. greg burke, thank you very much. jon: back to our top story now. in america's election headquarters rick perry is

out. he has suspended his campaign for the republican presidential nomination. he says he is going back to texas and he is endorsing newt gingrich, the former speaker of the house. how is this going to shake up the race? let's ask a man who knows politics like nobody else, larry sabato, director of the university of virginia center for politics. larry, talk about the timing. why do it today? >> big day in politics. avalanche of news. i would say he did it because he knew that he was going to finish at around the 4, 5, 6% level. that is humiliating for the incumbent governor of texas. he did the right thing and he is added to newt's momentum or what we're calling newt -- mentum. that is real. last two polls have south carolina essentially tied. jon: larry, let me interrupt you. you will want to hear this. this is newt gingrich at a live event in south carolina.

listen in. >> he has a particular project i hope all of you will pay attention to. they have a program that gary sinise helps them with call the lieutenant dan weekend. it is in september. it is a great project. listen i know gary. we know he is deeply, passionately committed to helping our wounded warriors, to helping our men and women in uniform, to helping those protecting america. and so i hope all of you will reach out to captain howard and that is part of your mission as a citizen is to actively work to help create a true independence wellness center that gives veterans all across the country a wonderful place to come to enjoy the coast here in south carolina. and i thank captain howard. [applause] captain howard is an example of the kind of citizen who just keeps leading in whatever role he happens to find himself in. i'm very proud of him. now, colonel steele talked

about the challenges we face and how to be commander-in-chief and what we actually need. let me first of all point out that i am wearing this tag that flew in front of george washington's command at valley forge. it is the flag of the first commander-in-chief of the united states. and i wear it in part to remind myself and others that when the constitutional convention met in philadelphia the person presiding was general george washington, and when they wrote in --. jon: newt gingrich in beaufort, south carolina. he has just received the endorsement of texas governor rick perry, a man who has dropped out of the republican race for the presidential nomination, just this morning, thrown his support to newt gingrich. gingrich seems to have some

momentum in south carolina, a state that has picked the winner of the republican nomination every year since its primary began in 1980. larry sabato is director of university of virginia center for politics. all right, larry, we didn't hear directly from gingrich about the perry endorsement there. obviously he is pleased. obviously he has at a preplan the event that came before this perry endorsement came through but what does it do for gingrich's campaign? >> well, this is of course just a couple of days before the voting saturday and i'm sure he is very pleased because this adds to what was already occurring. some key indicators were moving in his direction. he has to continue momentum tonight at the debate there. well, what is the history? he has done well at virtually every debate. he usually gets the a. i would expect him to continue that. bret baier mentioned earlier he has it survive this

interview with his second wife, marianne gingrich, which comes later tonight. most republicans factored that in. that is already in their voting decisions. jon, i think this south carolina primary is the one that mitt romney has most feared all along, correctly so. it is going to be very close and competitive. jon: and, again, with newt apparently on the upswing, if he get as couple of points, bump from this rick perry endorsement that could be huge, it could provide, he said the other day, that if he wins south carolina, he is going to win the nomination. >> yeah. we'll see about that i'm not sure. south carolina may ruin its record, we don't know. it is too early to say. and look, the average voter in south carolina isn't going into the polls saying, gee, who is going to be the nominee? let's continue south carolina's record of always picking the nominee. jon: right. >> that's not what is important for saturday but if gingrich manages to win,

if romney loses, then this is going to take longer tan certainly mitt romney wanted and that many republicans would have thought possible just a few days ago. jon: vestiges of obama-clinton back four years ago on the democratic side. >> i doubt it lasts that long. jon: we'll see. larry sabato. thank you. >> thanks, jon. jenna: meantime new fallout following the president's decision to block the keystone pipeline project. the president rejecting a permit yesterday to start construction of an oil pipeline from canada to the texas gulf coast. he blames a rushed decision by congressional republicans. >> in a purely partisan effort to score a political point, republicans in congress insisted on inserting an extraneous provision within a bill that had nothing to do with pipelines but with a bill to extend a tabs cut to 160 million americans, a tax cut that this president fought

very hard to get and to extend. jenna: that is press secretary jay carney of course. republicans arguing that the president's policy is working against job creation. >> president obama is destroying tens of thousands of americans jobs and shipping american energy security to the chinese. there is really, there is no other way to put it. the president is selling out american jobs for politics. jenna: jim angle is live in washington. really a flurry of news over this subject, jim, over the last 24 hours. there is some confusion. did the president kill the project completely? is it canceled completely, or is there another delay somehow? >> reporter: well, like the old tv game show, mr. obama says this is not his final answer. the president only left the pipeline project in limbo as he tries to walk a fine line between two groups of his base, unions that favor the project for the jobs it would create and environmentalists who oppose

it now and forever. listen. >> it keeps us addicted to oil and takes the pressure off our nation to develop renewable energy technology. now this pipeline will insure that our huge co2 emissions will continue unabated. >> reporter: republicans note the president's own jobs council even recommended the project and accused president focusing more on his job than others. >> the president's own jobs council said the energy pipeline projects like this one can create hundreds of thousands of american jobs. the unions support it. the states along the proposed route support it. and it has bipartisan support here in the congress of the united states. >> reporter: now the project had already gotten environmental approval from the state department but when environmentalists kicked up a storm over the route, especially over an aquifer in nebraska that approval was drawn but the state of nebraska and

pipeline company agreed to reroute it through another area of the state. jenna: a lot of domestic politics. we can't forget our neighbors to the north and that is canada. we understand the president called the canadian prime minister with that news. do we have any information how that conversation went? >> reporter: well, about like you would expect. canadian officials said harper, quote, expressed his profound disappointment with the news and he told the president canada will simply diversify exports looking at china instead. >> i believe that canada is going to go ahead and do it anyway. if the pipeline down to the gulf isn't built, they will move out west and the oil will go to china. >> reporter: now the president told harper the rejection was not based on the project's merit and says it isn't in the national interest for now. critics ask what will change other than the route which nebraska already agreed to do? skeptics ask if it isn't in the national have now when

and what would make the president decide that it is? jenna. jenna: the opportunity may be gone as canada moves towards the pacific northwest instead of the south. jim, thanks so much. the story we'll continue to watch. we'll be back with more "happening now." you know when i grow up, i'm going to own my own restaurant. i want to be a volunteer firefighter. when i grow up, i want to write a novel. i want to go on a road trip. when i grow up, i'm going to go there. i want to fix up old houses.

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jon: a new survey shows small business owners are afraid of the impact the new health care law will have on their employees and their bottom line. the survey released says the administration's progress is boasting about progress in implementing the new law. shannon bream is live from our washington bureau. shannon, what does this new poll show? >> reporter: jon, this comes to us from the u.s. chamber of commerce. they surveyed thousands of small businesses across the country and here's the number that jumps out of the 74% of the small businesses they surveyed said the health care law is blocking their hiring. they're worried about its impact. they say there is lot of uncertainty and regulations they're worried about and even bigger number. 82% said they want the government to get out of the way of the decisions they're

trying to make. they continue to point out they are the engine, they believe of the economy here in the u.s., jon. jon: so any response from the obama administration? >> reporter: we did catch up with health and human services secretary kathleen sebelius. we asked her about the numbers this morning. here is her response. >> small business owners right now pay about 18% more than their large competitors for exactly the same coverage and this new law gives them an opportunity to really be on a level playing field. so a new day is coming. >> reporter: the secretary said there is a lot of misinformation out there an inappropriate attacks as the law rolls out people will understand the benefits better. by the way still on track to head to the supreme court in march. dozens of briefs have now officially been filed in the case. an important development earlier this week. there was one original plaintiff to the case whose business went out of business. there were critics who said that killed the standing issue. well this week the supreme court allowed addition of two additional plaintiffs. they believe that clears up the standing issue, the

plaintiffs do, and justice department did not object to the issue of those two people. jon: you will have busy year covering the court. shannon bream. thank you. jenna: an american icon closer to cling its doors for good, maybe. what is next for kodak straight ahead?

jenna: right now an icon of american business on the brink of extinction. photography pioneer kodak filing for bankruptcy, a victim of the rise of digital technology. you have to be a little careful with the word extinction actually. ashley webster with us from the fox business network. >> boy, what went wrong? good question. absolutely right, kodak an icon no doubt of american photography. really ruled the photography world for 100 years. things started to go wrong actually in the '80s, when

strong competition from japanese companies came in. fuji came out with disposable cameras before you knew it the profits started to take a hit. the failure for kodak to embrace digital technology. the irony kodak invented technology all the way back in 1975. it is good but we'll shelf it because we're making so much money on film and the rest as they say is history. their sales ham halved between as you can see in those years from 2000 five to 2010. it is is a sad story. they filed for chapter 11 bankruptcy. they will restructure to try to come out a little stronger. jenna: a lot of folks we were talking during the commercial. jon said some of his photos are stored code tag online. jon: the kodak online website. jenna: if you have a kodak like jon what happens? >> that is fine. it will still operate as it has. it is getting protection from its creditors. it has $600 billion in debt. it will have to look for

help. it has gotten funding already from citigroup kicking in 950 million. all the products and services will continue. it will sell off assets though doesn't say what. let's be honest, their workforce at kodak has been decimated over recent years of the at one point kodak employed 145,000 people around the world. down to about 18,000. it is headquartered in rou chester, new york. at one point had 60,000 employees back in 1982. down to 7100. it is now though, focusing on producing printers, ink jet printers that will eventually turn profitable. that is where they're going to put their future. jenna: not extinct on the endangered species list? >> yes. much smaller, leaner, kodak in the future but not extinct. jenna: ashley, thanks very much. jon: so i can still get my pictures? jenna: that is the most important thing. jon: rick perry is out the republican presidential race. throws his support to newt gingrich. the impact this will have on

south carolina, a very conservative state, just two days before it goes to vote in its primary. plus the cruise ship disaster, how the accident happened and new information on the captain and a mysterious woman passenger. geraldo weighs in next. wake up! that's good morning, veggie style. hmmm. for half the calories plus veggie nutrition. could've had a v8. and then treats day after day... well that's like checking on your burgers after they're burnt! [ male announcer ] treat your frequent heartburn by blocking the acid wi prilosec otc. and don't get heartburn in the first place! [ male announcer ] one pill a day. 24 hours. zero heartburn. or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

jenna: just before noon here on the east coast, and a political bombshell, rick perry dropping out and throwing his support behind newt gingrich. we're glad you're with us on this busy day, i'm jenna lee. jon: i'm jon scott. perry's decision to leave the race shrinks the field by one. today's announcement has the rest to have candidates scrambling to readjust their campaign strategies, and the stakes could not be higher. the pressure is on. our chief pretty call

correspondent carl cameron is rolling down the highway from charleston to walterboro, south carolina, scrambling like the candidates are, i guess, carl? >> reporter: took the words right out of my be mouth, jon. we're on our way to watch newt gingrich's reaction to the endorsement by the former rival, rick perry. mr. perry's withdrawal absolutely puts some more wind into gunning rich's already -- gingrich's already-full sails. may be, indeed, within striking distance of mitt romney and perhaps even inching ahead, in terms of trend lines. can't trust polls all that much because we still have a large block of undecided voters, and they're going to wait until the last minute on saturday. there's an important debate tonight. perry's withdrawal does make it possible, newt gingrich will argue, for him to further coalesce the conservative vote, especially in the up state of the palmetto state trying to cast himself as the singular alternative to mitt romney.

romney, the front runner, has today congratulated rick perry for a race well fought and said he'll be missed on the stage tonight but continues to hammer at newt gingrich for a whole host of reasons. the gingrich/romney battle now threatens to eclipse rick santorum and ron paul. they're this a battle, it seems, for third place, and some of the votes suggest paul's got an edge there. rick santorum finds himself in an awkward and almost unique american politics situation. this morning the iowa republican party certified that, in fact, he got 34 more votes in the first in the nation caucus than mitt romney did. santorum has claimed victory x he finds himself now at least in the polls in south carolina trailing ron paul. and in jeopardy in the absence of rick perry without a turn about, rick santorum could go from having found out he got more votes in iowa, the first contest a couple of weeks back on january 3rd, and then risk

potentially coming in dead last without perry in the race in south carolina. santorum's got a lot of work to do and a lot of momentum. the campaign's looking to buy more ads both here in south carolina and in florida. so we are looking at a race where candidates are continually, continue to say they will campaign past south carolina, but this time rick perry's not one of them. he's gone, backing newt gingrich is a big boost for the former speaker who's under significant fire today because of the anticipated remarks of his second ex-wife, marion, who has gone public in a broad cast, and some of the excerpts are now out suggesting that newt gingrich had asked her while they were married for permission to have an extramarital affair with his now-third wife, calista. that is likely to come up in the debate and on the campaign trail, but rick perry's going back to texas, though he says gingrich is the guy to be the republican nominee. jon: carl cameron on the way to

a newt gingrich event, thank you. jenna: chris wallace is joining us, host of fox news sunday, and your chair is stationary since we have carl on the move, chris. you can sort of relax, take it all in the. [laughter] whoever wins south carolina, we hear from the candidates, whoever wins south carolina is going to be the nominee. and i wonder with news like this so close to the primary on saturday if that's, number one, the case now, and whether or not the shifting of candidates getting out of the race has changed it and left more of an opening for florida to maybe determine what's next here for the gop? >> well, good afternoon, jenna. listen, there are a lot of things that are happening. this is one of those extraordinary days that makes you happy to be a political reporter. you've got the developments in iowa where it looks like santorum won, that would have been a lot bigger and he would like to have gotten that news right after iowa, not now when everybody's focused on south carolina. you've got perry dropping out and the endorsement of gingrich,

you've got a debate tonight, and then you've got what potentially could really be an explosive event, and that is abc's interview with newt gingrich's second wife, his ex-wife, mary ann. she says a lot of tough things about gingrich in that interview, abc has already released parts of the interview, and i think that could have a dramatic effect on this race particularly with so many conservatives and evangelicals, precisely the people who might be perry voters, and you wonder how are they going to be affected when they see what mary ann gingrich has to say about her ex-husband and the affair he was carrying on for years while they were married. there's an awful lot happening, and i just don't think polls make any -- have any relevance right now because of the fact that there are going to be so many shifting developments this these last 36 hours before people go to the polls and actually vote in south carolina. jenna: in some ways, though, it's par for the course, isn't it, chris?

i remember that interview you did with rick perry in texas, and i think of the journey he's been in since when he got into the race until now when he left the race. what are your observations overall about what's really driving momentum here and what's really sticking? >> well, clearly, you know, prior to today and it's like, you know, that was a whole different political universe, gingrich had momentum. he did very well in the debate on monday. i think that romney suffered some self-inflicted wounds, one, from his kind of waffling as to when he was going to release his tax returns, and then on tuesday completely unplanned by him and the campaign he was asked a question, what effective tax rate have you been paying, and he said 15%. and, you know, that puts him in a different league than a lot of people who earn their salaries from investments and capital gains, perfectly legal, but it doesn't look like it makes him experience what a lot of other

people do who are paying 25, 30% taxes. so everything seemed to be moving gingrich's way, and the polls today were reflecting that, showing that a lead that had once been 15 or 20 points was now down to single digits, and according to one poll gingrich was in the lead. the perry thing today, then the abc interview which isn't food news and, obviously, will come up in the debate tonight. how will gingrich handle it, how will the opponents deal with it? and when they're asked to comment on it, you know, this is -- everything is being, is changing every 20 minutes today. it's quite an extraordinary political day. jenna: it is extraordinary. one of those news items i'd like to bring up really quickly is we got the announcement from republicans that the person that's going to give the response to the president's state of the union address is going to be mitch daniels, governor of indiana, and at one time was thought to be a presidential candidate maybe. and it just begs the question about whether or not this field

is set and whether or not all the candidates are truly out there. chris, your quick thoughts on that? >> well, quickly, i think so. i mean, i know that there are an awful lot of people who keep saying, gee, maybe mitch daniels would get in or chris christie or marco rubio, but, you know, as we saw, in fact, with rick perry, perfect case, there are tremendous disadvantages to coming in late, and now this is six months later. you don't have the money, you don't have the organization, you don't have the practice and the vetting of going through what these guys went through in exhibition season last year. huge disadvantage. i think that, you know, we're really down to four people, and one of those folks on the stage tonight is going to be the republican nominee. jenna: very exciting time, chris. thank you so much for joining us on this thursday, i know you've got a lot coming up on sunday. be sure to check out fox news sunday this weekend, his guests will include speaker of the house, john boehner. that's this sunday, check your local listings for the time in your area. jon?

jon: well, rewriting history in the iowa caucuses. last we knew this is how the first contest in the presidential race turned out, mitt romney squeaking out a win by just eight votes ahead of rick santorum. but as you just heard chris mention, iowa has officially certified the results, and they show santorum, in fact, with a 34-vote victory. iowa is calling the race a virtual tie. steve brown with more from chicago. i guess there are eight precincts that still have not been able to get results in. how's that possible, steve? >> each one of those precincts, jon, is supposed to turn in a sheet of paper. there's supposed to be a caucus chair which is appointed person for that job that night, and they're supposed to fill out a form e. that piece of paper goes to the county chair, the county chair turns all of those over to the state party. that's the official certification document for that precinct. in eight instances out of 1774

different precincts, they did not show up. so that's what happened. and what the chairman says is that you cannot count or certify those votes without that paperwork. >> for those eight volunteer-led precincts that weren't able to get forms in, i can't speak to why they weren't responding to the calls of our staff. in fact, we had staff that we put out on the road to track these forms down because from my standpoint the most important thing was getting accurate results and making sure that every ayaan had an --o work a -- >> this is a caucus, not a primary, so this is all volunteer run. it's not like it's an election machine and you go in and punch a button. this is purely a volunteer effort. jon: steve brown live from chicago. thank you, steve. jenna: new reports the crew of a sinking cruise ship, that one in italy, was reportedly lying to the italian coast guard, covering up the extent of the

emergency and causing a deadly delay in rescue efforts. we're going to have more on that as more on the story comes out. and a monstrous storm hits the pacific northwest slamming the region with fierce winds and heavy snow bringing some area toss a complete standstill. >> well, this morning the snow was falling so hard that, um, it was pretty hard just trying to keep up. i guess some of the higher elevations, we were getting somewhere in the 12-16, 18-inch range. okay, team! after age 40, we can start losing muscle --

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[ male announcer ] when you combine creamy velveeta with zesty rotel tomatoes and green chilies, you get a bowl of queso that makes even this get-together better. [ british accent ] i host a book club. so sexy... vaga had no tolerance for such dastardly deeds. finall.. [ male announcer ] when you combine creamy velveeta with zesty rotel tomatoes and green chilies, you get a bowl of queso that makes even this get-together better. jenna: new details now on that deadly shipwreck off the coast of italy. reports of a new audiotape surfacing in which the captain tells port authority there was only a blackout on his ship. that conversation apparently took place 30 minutes after the vessel hit a reef. in the meantime, a woman who says she was with the captain that night, and she's apparently

defending his actions and saying he saved thousands of lives. geraldo rivera is anchor of geraldo at large, we're joining him from his radio studio which is all very fanny, and we're here to talk about this, quote-unquote, mystery woman, geraldo. >> hi, jenna. jenna: she wasn't a guest on the ship officially, so who is this woman? >> well, we're getting conflicting reports. first, it sounded like a really, an outrageous example of the recklessness and the total disregard for the safety of his passengers that the captain demonstrated because the initial reportses were that a 25-year-old blond woman from moldova had been seen with the captain on the bridge of the vessel at the time he smashed the costa concordia on the rocks of that island. so, you know, the image that we saw was here he is showing off, show have been boating with a woman half his age who, you

know, is not a registered member of the crew. subsequent stories, she may indeed be the bombshell that initial reports indicate, but subsequent reports say she was a hostess on the crew, and that she was call today the bridge to help translate with some of the russian passengers who were being evacuated. that is, at least, what she is posting on her facebook page. so we don't know whether dominica was a hostess on the crew or just a girlfriend of the captain. but we do know that she was on the bridge if not at the time of the disaster, but shortly after. but she is a potential witness, prosecutors have not yet called her to testify in the inquiry, but certainly she is an intriguing figure in the mess and this mess that this skipper created by steering that vessel too close to shore, jenna. jenna: and we're taking in some live pictures from italy as we

continue to watch this rescue effort. it continues to be that. and we see it live on our screens. the ship's still tilted over, and there's still so many questions about what exactly this captain did. now, the woman is offering a description, again, according to reports that he helped save the lives of thousands of people, but then you have this other report that says instead of calling the coast gourd or port authority, that he placed a call to his parent company first. tell us about that. >> well, those stories, they both may be true, jenna. first of all, let's give him some credit where slight credit is due. there is little doubt, and i was at the marry time institute of -- maritime institute of technology yesterday in a simulator very close to the costa concordia, they recreate the bridge of the vessel with the charts of the island, and it was very clear that he could not have -- if he was just paying any attention whatsoever, he could not have missed the fact

that there were rocks on that shore and that he was too close. the recklessness of his negligence is transparent. however, to his credit it does seem to me as an experienced sailor that by steering that ship once it was stricken, once it was taking on water, by steering it into the shallows, that's why it has not sunk the way the titanic or so many ill-fated vessels before the costa concordia have sunk. he rammed her up on shore so it didn't completely sink and, therefore, he claims that he didn't recklessly endanger those lives or, indeed, take the lives through his reckless disregard, his manslaughter of the 11 who are dead. but he saved the lives of the thousand because the vessel didn't entirely sink, and it was rammed up against the shore so the passengers could easily make it to to the island and safety. the other point is something that rubs me very wrong, you

know, the fact that instead of calling on the emergency frequency we all have, channel 16, you pick id up, you say mayday, i'm sinking, i'm sinking, or i'm taking on water, please, respond to my emergency, italian coast guard. instead he calls on his satellite telephone, he calls carnival cruise, the offices, the owner's office to inform them that he has, you know, this disaster that has happened and is unfolding. it really seems as if he was more covering his behind than he was taking the prudent actions that would be expected of an experienced mariner who's going to save the people onboard that vessel. jenna: certainly a lot of reports to go through, and i'll be interested to see that maritime simulator that you were able to look at. thank you, geraldo, by the way, for joining us from your radio studio. it's going to be a special,

tragedy at sea, saturday at 10 p.m. eastern time. geraldo's going to be hosting that, tune in for that, and we'll look forward to that. geraldo, thank you. jon: there are growing tensions, of course, over iran's nuclear ambitions. is israel on the verge of mounting a military strike against that rogue nation? why the u.s. is sending it top military officer to israel right now to discuss that possibilityñ wake up! that's good morning, veggie style. hmmm.

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jon: new fallout, now, from the president's decision to block construction of the keystone oil pipeline stretching from canada to the gulf coast. canada is expressing profound disappointment saying it may decide to export its oil to china instead. now republicans are signaling they may push the issue by calling on secretary of state hillary clinton to testify before congress. fox business network's peter barnes live in washington with more. peter? >> reporter: well, hey, jon. hauling the secretary of state up to capitol hill is just the beginning for angry republicans. the pipeline company itself, transcanada, says it will reapply for the building permit. approval could take another year or two to win, however, according to experts. so house republicans are also looking at strategies to speed this up. they are considering legislation to approve it outright by attaching it to a must-pass measure like extending the payroll tax cuts again.

one big supporter of the pipeline, the u.s. chamber of commerce, is calling on congress to investigate this decision. it believes the white house political strategy here was to kill the pipeline now, win over environmentalists for the president's re-election, and then hope that voters forget about it by november, including union members that supported the project because it would create thousands of new jobs. >> the labor unions said this was politics at its worst and said that the blue class, middle class -- blue class workers, you know, wouldn't forget this. and they won't. and we'll see what happens and how that effects november. but, you know, they're smarting. those are real jobs. they were banking on that to happen this calendar year. not next year, this year. >> reporter: now, the chamber plans to continue its campaign for the pipeline to make this, at a minimum, a big issue in the president's re-election, starting with new ads, jon, just like this one running in the local political papers here.

this is politico today, says, mr. president, why did you say no to 20,000 jobs? if you can see, expect to see these ads continue right up to the elections. jon? jon: that ad in "the wall street journal" yesterday as well. peter barnes in washington, thank you. jenna: right now a big news day stateside, but we don't want to forget this very important meeting happening overseas right now. general martin dempsey, chairman of the joint chiefs of staff s in tel aviv for talks with israeli leaders. the u.s. and israel want to prevent iran from obtaining nuclear weapons. the ambassador to the u.n -- israeli ambassador to the u.n. join us us now from tel aviv. ambassador, there's been a slew of reports out this week, one being from "the new york times," that israel will act alone without the united states, without even notifying the united states if they want to take military action. how likely is it that that is the case?

>> well, jenna, i hope very much that the visit of general dempsey who we welcome very, very much signals a very close alliance between israel and the united states, and there is a very close cooperation between israel militarily and in security matters, and also signals to iran that both israel and the united states are serious about this, will make every possible effort to make sure that iran does not attain nuclear weapons. and if all diplomatic efforts fail, all other options are on the table, as the president said. and i assure you, israel will not allow iran to attain nuclear weapons. as to -- jenna: how so, ambassador? >> i hope very much -- yes, sorry. jenna: i apologize for interrupting. we have a bit of a delay. i was just curious how specifically israel will make

sure that iran doesn't get a nuclear weapon. >> well, israel hopes very much that the sanctions which have still not been taken both on iranian oil, on the central bank and on other areas will be biting, will be effective and will make iran stop it quest for nuclear weapons. but if this does not work, israel will have to act. it will hope, and it does hope very much that the international community led by the united states will act, but if nobody else will, israel will have to take care of itself. you know, israel has never, ever asked the united states to defend it, it has never asked the u.s. to fight for it, it has never asked one single american soldier to give its life for it. but just as we've never asked the united states to defend us, i don't think we need permission from anyone, including a close

friend like the united states, to defend ourselves. having iran with a nuclear weapon is something which is unis acceptable not -- unacceptable not just to israel, but to the rest of the world. it is a threat to civilization as we know it. it would create a hourly dangerous and ugly -- horribly dangerous and ugly world or in which nuclear weapons are in the hands of a rogue regime of islamic fundamentalists, extreme views, and it will have no compunction about having nuclear weapons and dirty bombs available to terror organizations whether it's hezbollah and hamas in our region or al-qaeda or even cells inside the united states. the iranians have stopped at nothing, they have just tried to assassinate the saudi ambassador to washington and, therefore, they pose a threat to you just as much as they do to us. jenna: and they're now threatening the saudis to tell them that they cannot produce more oil if some of these oil

sanctions take in effect. and we do know there are reports that iran is supplying syria and the syrian government with weapons to use against its own people. there's been a lot of talk about red lines. secretary of defense over the weekend said a red line for the united states getting involved militarily with iran would be closing the strait of hormuz, if randy that, or if iran got a nuclear weapon. what is the red line for israel? >> the red line for israel, as it should be for the rest of the world, is the moment iran attains the capability and the know-how and the capacity to produce a nuclear weapon. it is not when they have it. when they have it, it will be too late. this is, you know, this is not a movie we are watching. this is a horror movie with consequences soon to be seen in a theater near you unless everybody stands up and acts.

we have to understand, the iranians have threatened to wipe israel off the map. they have threatened to bring havoc to countries in the middle east. they've threatened terror on the united states. and all i ask the united states and the international community is listen to them. take them at face value. and understand that these people mean what they say. we don't need to interpret them. we just need to listen to them, we need to look at history, we need to look at what happened when north korea became a nuclear power and stop allowing iran to fool the world -- playful time, and one day we'll wake up with a nuclear run. by that time, it'll be too late. the red line is long before they have the weapon, but we know they have the capacity, and that is something that could happen this year, not much further away there that. jenna: your words are not lost on us as we continue to take a look at the story each and every

day on "happening now." thank you so much for joining us today. jon: there is a bizarre breach to tell you about at one of the world's most secure facilities. how did al-qaeda propaganda get into the hands of a guantanamo bay detainee? plus, big developments in the republican race just days ahead of the south carolina primary. a serious contender drops out. next, a brand new poll of voters in that state taken just before this breaking news about governor rick perry. what it tells us about the fallout. this is $100,000.

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jon: a fox news alert. and a brew brand new poll of republican voters in south carolina show saturday's primary could be a game changer. the "rasmussen poll" conducted yesterday puts newt gingrich on top with 33%. mitt romney, two points behind, making this race a dead-heat. it is all inside the margin of error. with texas governor rick perry on the bottom of the screen with 2% support. he has dropped out. he endorsed newt gingrich and that makes it a whole new ballgame. joining us the author of a brand new book that comes out later this month, the people's money. independent pollster scott rasmussen. president of rasmussenreports.com. the company that conducted this poll. were you surprised to see newt gingrich on top, scott? >> well, i would have been surprised except we had done

a national poll the night before and we saw this gingrich surge taking place. what happened, the speaker gained 12 points since monday night. came pretty equally from romney, santorum and perry. but this is a stunning turn around. part of it i think was the debate. part of it is sarah palin's comments. jon: you have a debate coming up, well, is typically newt's strong point. he could pick up more support i suppose? >> i don't know how the speaker could top monday night's debate performance. really one of the best i've seen. there also the other factor of this interview with one of his ex-wives coming out. this will be a tumultuous couple of days for this campaign. about a third of the voters say they could still change their mind. i think the message though, regardless where speaker gingrich ends up, there is still a vote out there for people who want to slow down the romney campaign and want to either make him campaign a little harder or perhaps

find another nominee. jon: you asked voters as well in south carolina who would you vote for if the vote were held today, i'm sorry, talking about the favorability poll now. you asked, what, you know, opinion was, was it favorable or unfavorable of these various candidates. when you combine the favorability, very favorable and somewhat favorable numbers for mitt romney and newt gingrich they're essentially tied again at 66% for romney, 64% for gingrich. >> that's right. and again, a big jump for gingrich. before monday night's debate, only 55% had a favorable opinion of the former speaker. romney's numbers haven't changed all that much. people still, despite all the attacks on bain capital say, republican primary voters say that is still a reason to vote for him. so the opinion of romney is holding steady. gingrich has moved up in the last couple of days. jon: we'll see if that favorability rating holds for gingrich after that abc interview with his second

wife. final question, who would be the strongest opponent to president obama, scott, that is one you asked. 42% say mitt romney. 34% say it is gingrich. >> much closer than it was before the last debate. on monday's poll romney had better than two to one advantage on third quarter issue, 49% to 23%. so the perception of that feistinesses, i hear lots of republicans saying even those to don't like speaker gingrich, i would love to see him in a dei bait with president obama. perception of electability, raising doubts about governor romney. other issue that was very significant. we asked which republican candidate would be best when it comes to the economy. 36% say romney. 31% say gingrich. all these indicators point to the fact before people assimilate this next interview and before tonight's debate the race is very close in south carolina. jon: very close but again we should point out this poll

was taken before governor perry dropped out of the race. >> that's right. and let's face it, governor perry, the voters abandoned him before he abandoned his race. he is only 2% support. i suspect that will be more likely to go to speaker gingrich than to governor romney but it's not, that in itself is not a game-changer. most of those voters have already moved over to the gingrich side. jon: i suppose governor perry may have been seeing some results like that in his own internal polling. his numbers seem to be going down in south carolina. maybe that is why he decided to get out of the race now rather than wait for the actual vote. scott rasmussen, from rasmussen reports. again, thanks very much. >> thanks, jon. jenna: there are so many references to interview with maryian gingrich, the former wife of newt gingrich. we have sound from the interview we are going to play for you as soon as we can. stand by for that. that is coming up. more gruesome discoveries near the famous hollywood sign. we have a live report on the murder investigation that has begun. plus a mom upset after

her son bring as bible home from school. was she then donated to the library and why it sparked an even bigger controversy. when you have diabetes...

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with 15 grams of protein to help manage hunger... look who's getting smart about her weight. [ male announcer ] new glucerna hunger smart. a smart way to help manage hunger and diabetes. jon: a fox news alert and a live look at disney world in florida. looks like kind of like the president might be no normandy or something. no, he is at disney world, set to make remarks about boosting tourism. we are going to keep an eye on the president's comments and bring you the highlights as he makes them. jenna: also streaming on foxnews.com by the way. again from walt disney world to this story, a shocking security breach at gitmo. a magazine linked to al qaeda with tips how to kill americans found in the cell of a suspected terrorist. how did this happen? chief intelligence correspondent catherine herridge is live in washington. not sure you have an explanation necessarily for this one, catherine, but

what is the backstory. >> reporter: apparently no one does. at gitmo we're hearing about motions screening mail and other communications between most dangerous detainees and lawyers as navy commander defended new restrictions a cop of the inspire magazine was found in the detention camps. this inspire magazine published by al qaeda in yemen is kind of like martha stewart living for jihadists. inspirational and how to guide, providing recipes for building bombs with household items. according to court adopts the a copy was found in the motel room of the has sure abdu accused in july of plotting a second massacre at fort hood, texas. it it shows it is getting. i personally toured the gitmo library twice. this video is from the

recent trip in july of 2010. we learned most popular titles include, "harry potter", agatha christie and sherlock holmes and "twilight" series about vampires. the military police officer at that time asked us not to show his face or used his name explained the reading material is vetted thoroughly. >> often times we try and redact or color over something that might be offensive but they also do. they will find it and they will, they will black it out which is great. we, have no problem with that. >> reporter: military spokesmen could not immediately explain how inspire got into the camps and who exactly read it but it clearly raises questions about the security for the remaining 171 detainees managed by a staff of 1850 people, guards, tell again agents and lawyers. that is 10 people for every detainee there. jenna: catherine, thank you. >> reporter: you're welcome. jon: a horror in the hollywood hills.

body parts continue to turn up near the famous hollywood sign. who do police think they belong to? we'll have the very latest on this investigation [ male annouer ] juice drink too watery? ♪ feel the power my young friend. mmm! [ male announcer ] for unsurpassed fru and veggie nutrition... v8 v-fusion. could've had a v8.

jon: some new information for you right now on a grisly murder investigation near the iconic hollywood sign. police are trying to identify a man whose body parts were found dumped near a popular hiking trail. julie banderas, live in our newsroom with more. >> reporter: jon, the story getting more gruesome by the day. two women discover ad severed head in a plastic bag while hiking in hollywood. today we're learning investigators found more body parts belonging to an unidentified male. those body parts include two

hands and two feet. now the los angeles police department today continue their grim task of searching for the rest of the body. in a brush terrain below the "hollywood" sign. authorities still have no idea who this man is but they are optimistic. the hand are in good enough condition to obtain fingerprints from them. it is a gruesome story, jon. the homicide investigation began tuesday afternoon after two doug-walkers in bronson canyon park noticed their dogs playing with a plastic bag and went to inspect it. inside was a man's head. his hair was graying. police say he appeared to be in his 40s and probably been dead for a day or two. detectives believe the killing happened elsewhere and the body or at least some of the body parts were dumped in the park. they're hoping to find more remains as the search continues today, jon. jon: that is an awful story. i hope they come up with the identification. julie, thank you. >> reporter: sure. >> a new information about a

battle over the bible in a north carolina school. one mom fighting her son's school after she says they passed out bibles to students. jonathan serrie live in atlanta with more. jonathan, let's start with that. what prompted this mom to challenge the school bibles? >> reporter: certainly, jenna. certainly creating a lot of discussion and debate in western north carolina over the use of religious texts in public schools. ginger stra developly complained when they are 12-year-old son came home from school with gideons bible the principal assured her the school would accept donated texts from any religious organization. when she tried to drop off pagan spell books she was turned away. the mother of six says her challenge to the status quo is a matter of fairness and protecting her children from being harassed. listen >> ever since elementary

school i've been bullied about the my religion. >> schools should not give out other materials. >> reporter: during the review process no school in the district will accept any material which could be viewed as advocating a particular religion or belief the first amendment prevents government from the favoring or restricting any one religion. so legal experts tell us when it comes to distribution of religious texts public schools have two clear choices. >> you can either open your public school up to all religious material, or you can say no religious material, but you can't say you can distribute religious material but only from the good ol' mainstream. >> reporter: jenna, the school board is expected to discuss the issue at its next meeting. that meeting scheduled for february 2nd. back to you. jenna: real interesting points. jonathan did you get a look at the pagan spell book, just curious? >> reporter: did not read the entire book but thumbed

through but one of several texts mrs. stri develop i -- strivelli tried to drop off at the school. the officials turned her away saying the policy was under review. >> joan than, thank you. jon: well, a billionaire steps up to the plate shelling out his own money to fix one of the most famous monuments in america. who we're talking about and why he is doing it straight ahead. [ sniffs ] i have a cold. [ sniffs ] i took dayquil but my nose is still runny. [ male announcer ] truth is, dayquil doesn't treat that. really? [ male announcer ] alka-seltzer plus fights your worst cold symptoms, plus it relieves your runny nose. [ deep breath] awesome. [ male announcer ] yes, it is. that's the cold truth! or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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jon: ooh, an extreme weather alert for you now. icy conditions forcing seattle international airport to shut down three runways for the first time in a decade. on the snow-clogged roads there, hundreds of accidents are piling up, making it difficult for emergency responders to get around. >> that's the fear in this kind of weather, that too many people will be out driving, and they'll crash, and then we'll have a whole extra set of calls to get

to. hopefully, people will stay home and only drive if they have to. jon: well, don't say she didn't warn us. meteorologist janice dean live in the fox extreme weather center. >> reporter: it was fun yesterday, jon, but they have an ice storm warning for seattle, people are urged to stay indoors, don't go on the roadways, the storm in effect for the next couple of hours. look at some of the snow totals across oregon and idaho and washington, but 50 inches, that's an estimate on mount hood. so incredible snow totals, and we certainly set records in a lot of areas. but this moisture continues to stream in to the same regions over and over from the pacific. and you can see that mixture of ice and/or freezing rain for parts of seattle. down towards olympia. that's where we have our freezing rain warning in effect. power outages are imminent,

downed trees, people are urged to stay off the roads and stay indoors, and those power outages are coming in by the thousands now. taking a look at the future radar real quick, this storm kind of peters out, but another storm moves in, and another storm behind that. so, unfortunately, it's going to be very treacherous for the northwest over the next several days into next week as storm after storm after storm moves in, jon scott. and just for you, across the northeast we might have a little storm system moving in across the weekend bringing us some accumulating snow. [laughter] jon: wow. we haven't had that since october here. >> reporter: yes, we'll talk about it tomorrow at this time. jon: they've also got four climbers and campers missing on mount rainier, they're hoping they're well equipped to weather the storm. >> reporter: absolutely. hearts and prayers out there. jon: janice, thank you. >> reporter: you're welcome. jenna: a billionaire history buff says he wants to repay his debt to his country, so businessman david rubenstein has

given $7.5 million to help repair the washington monument. the landmark, as you'll remember, was badly damaged last august after a 5.8-magnitude earthquake rocked the east coast. it was a strange event and, you know, strange things happen, so rubenstein says he doesn't want to be buried with his wealth. he has donated money to a number of washington-area institutions. the repairs will begin this summer, but he's footing the bill for that. jon: good for him. jenna: right? jon: good for him, and good for that guy who's rappeling off the monument -- jenna: that's not a bad dinner conversation. jon: george would be really proud, wouldn't he? thank you for joining us today. jenna: a big news day continues with "america live," that starts right now. megyn: fox news alert on new questions for newt gingrich and a new interview that his ex-wife claims could end his career. welcome to "america live," everybody, i'm megyn kelly. we are waiting for