making news this morning, the final faceoff. >> it's a scene you will not see again until voting begins next year. the gop candidates clash. some cool, others confident. and front-runner, newt gingrich, with the most, of course, to lose. a new era starting today in iraq. we're on the streets of baghdad, finding answers. will businesses grow? also today, the nine-story plunge. daredevil kayakers tackle this waterfall. and, yep, they did it on purpose. good morning, everybody. happy friday. i'm rob nelson. >> and i'm sunny hostin.

we begin this morning with a breakthrough on capitol hill. late last night, congressional negotiators ended a standoff that threatened to shut down the government at midnight tonight. >> democrats and republicans both did give some ground in all this. and agreed to a trillion-dollar spending package. at the gop debate in iowa last night, the candidates blamed the gridlock on a failure of the president's leadership. >> abc's tahman bradley now joins us with the details. >> reporter: with no more debates until the iowa caucuses, it's down to the wire for the gop candidates. so, they're finishing with their closing arguments. mitt romney isn't putting all of his eggs in one basket. he'll campaign in iowa. and then move on to south carolina, where sources tell abc news, he'll pick up a crucial endorsement from governor, nikki haley. romney's relentlessly pounding away on his go-to message. >> i know what it takes to get

this economy going. >> reporter: after a week of gaps at newt gingrich, romney played nice. avoiding confrontation with the former speaker. and perhaps a sign that his anti-gingrich ads and scrutiny are making a difference. >> i'm appearing not zany. >> reporter: michele bachmann came ready for combat. she is competing for the votes of social conservatives. and she jabs gingrich for his work with freddie mac. >> we know he cashed paychecks from freddie mac. >> on policy to break up fannie mae and freddie mac. >> reporter: bachmann lashed out at ron paul for saying he would lift sanctions against iran. >> it's another iraq coming. >> i don't think i've ever heard a more dangerous answer for american security than the one that we just heard from ron paul. >> reporter: and a hail mary from rick perry. >> i hope i am the tim tebow of

the iowa caucuses. >> reporter: the candidates will fan out across iowa and other early voting states over the weekend. sunny and rob? >> tahman bradley in washington. thank you. president obama's campaign pledge to end washington's partisan rancor has gone completely unfulfilled. but whose fault is it? abc's barbara walters asked the president in an exclusive interview at the white house. >> reporter: we have never seen -- that i can remember -- a more divisive situation with you and the republicans in congress. is that a failure of your leadership? or is that all them? >> you know, you never want to say it's all them. but i do think that right now, at least, in the republican party, there are a couple of notions. number one, is that compromise is a dirty word. number two, anything that obama's for, we're against.

so, if i propose a health care bill that is full of republican ideas, in fact, is very similar to the law that was passed by the current republican front-runner, or one of the top front-runners -- >> reporter: you've just done him in, i think. >> well, the other guy was supportive of many of the ideas, as well. suddenly, they become against it. >> you can see barbara's full interview with the president on a "20/20" holiday special, next friday, december 23rd. moving on, now, to new era for iraq this morning. in just a few days, the last u.s. combat troops will finally leave. u.s. and iraqi officials held a ceremony yesterday, marking the end of the iraq war. of course, there are still many unanswered questions. abc's nick schifrin is in baghdad for us. good morning to you, nick. >> reporter: good morning, rob. it's day one in post-war iraq. that doesn't mean that this country is at peace. there's a lot of tension on the streets here. and a hope that a departure of

u.s. troops brings less struggle and more success. u.s. troops are out. and business is in. this is the baghdad the iraqi government hopes will emerge. a construction expo, where companies jostle for contracts worth more than $100 billion. there is so much to build here. this was sadr city in 2008, the largest neighborhood in baghdad. and one of the most violent. militias used it to launch rockets at the u.s. embassy. until u.s. troops moved in and fought a huge battle. they won, but at great cost. >> this gives you a sense of how massive the cleanup operation is in sadr city. this is the edge of the market that saw two months of heavy fighting. now, the goal is to try to clean this up enough so people can shop here again. this is that market today, bustling. there's no doubt iraq is safer than a few years ago.

but beyond these dramatic improvements, you can feel anxiety on the streets of baghdad. there are still attacks, like this one this month. al qaeda is still here. as are violent militias. and it's not clear the iraqi army can guarantee security. they are young and untested. >> they're going to have to improve their intelligence. they're going to have to continue to work on their logistics, as well. that's still a work in progress. and they're going to have to demonstrate the resolve to do those things. >> reporter: it's that revolve that iraqs say is their security. they've seen the worst of days. and they'll do everything to make sure those days never return. nick schifrin, abc news, baghdad. and to give you a sense of how fragile people think this era may be, there's been a recent run on gun shops. and the prices of a.k.-47s have doubled in the last few weeks. a clear sign people fear they may have to soon defend themselves. rob?

>> even with those purchases, though, what a stark contrast between images then and now. nick schifrin live for us again. time, now, for the weather across the nation. showers from washington, d.c., down to the carolinas and atlanta. thunderstorms for jackson, mississippi, baton rouge, new orleans, houston and san antonio. snowshowers in the northern rockies. and, wow. 70-mile-per-hour santa ana winds in southern california. >> not getting a break. 60 in sacramento. 41 in albuquerque. 36 in salt lake city. 20s in fargo and minneapolis. and mostly 30s from kansas city to indianapolis. 49 here in new york. and 80 in miami. coming up, all that procrastinating may pay off. how you can save a bundle if you shop today. >> good news for me. and a city in shock this morning, as an nfl star is accused of being one of the of the top-ten drug dealers in chicago.

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well, maybe no surprise here. the bosses, well, they keep making more money. a study finds ceo pay went up 27% last year. you figure in pension and retirement plans, plus stock options. and that figure is more like 36.5%. the highest top paid executives were all men. they made more than $145 million. also, mortgage rates were at record lows. the 30-year fixed rate loan is tied with the record set in october.

3.94. 15-year mortgages are also at 3.21, also a record. and economists say the rates could go lower. still, this has been a terrible year for homes sales. overseas markets are improving. tokyo's nikkei average and hong kong's hang seng were both up slightly today. in london, the ftse opened higher. on wall street, the dow was up 45 points yesterday. the nasdaq index gained, as well. although, just under two points. relief is now on the way for thousands of homeowners. most of them in gulf coast states. a chinese company has agreed to pay hundreds of millions of dollars for deflective drywall. the drywalled called metal in the homes to corrode. that will now cover about 4,500 homes. facebook's timeline feature is now live. it's a new look for social pages on the network. it makes it easier for you and

everyone else to see everything you've ever done on facebook. if any of that is embarrassing, you'll have seven days to remove that material once your page is converted. >> seven days. so noted on that. and today may be your last chance to get free shipping and still have the purchases there delivered by christmas. more than 2,300 online merchants have signed up to be included on free shipping day, including major chains. a min numb purchase may be required. not too late for procrastinators like me. next on this friday morning, a scene of compassion, as a police officer calmed the woman crushed by a bus. >> look at that. also, another week in the nfl is under way with a very lopsided thursday night game. highlights and more, when we come back. what makes a dollop of daisy so creamy and delicious? care and dedication. our family-owned company has focused on making...

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two reindeer are back with

their friends in santa's barn after escaping on a texas freeway. the runaways, named comet and dancer, were en route to visit a school, when the trailer door opened in rush hour traffic. of a flood of 911 calls, they were safely corralled. >> even reindeer just want to enjoy the holiday. now, for a look at morning road conditions on your friday. icy on i-90, from erie, pennsylvania, to buffalo. also, slick on i-40, from raleigh to little rock. i-10, from baton rouge, to san antonio. and i-20, across texas. windy conditions in southern california. >> and if you're flying, just a couple weather-related airport delays. los angeles and houston. chicago bears' wide receiver, sam hurd, is behind bars this morning, facing some pretty serious drug charges. >> he was arrested during an undercover sting operation wednesday night and accused of setting up a drug dealing network. prosecutors say he was looking to buy $700,000 of cocaine and

marijuana a week. the investigation lasted yast year in texas. hurd says he is innocent. two former penn state officials accused of stone walling a complaint about the sex abuse of a child will be in court this morning. but the real focus is likely to be on the man who made that complaint. and that's assistant football coach mike mcqueary. the athletic director and school vice president said mcqueary did not tell them enough to report to authorities. there will also be a preliminary hearing today for army private bradley manning. the former intelligence analysts is accused of passing documents to wikileaks, which passed them to the government. the hearing could run all weekend or longer. if convicted, manning faces life in prison. and an italian appeals court has issued a stunning report on why it overturned amanda knox's murder conviction. the three-judge panel wrote there was no objective evidence to support the verdict that knox

did kill her roommate. and they said the scenario the prosecutors claim happened was simply improbable. knox and her former italian boyfriend were acquitted back in october. now, to an incredible act of compassion out of utah. west valley police officer, kevin peck, comforting 20-year-old aryann smith, after she was struck by a bus and pinned underneath. smith's legs were crushed. but officer peck risked his own life to hold her hand. he kept his promise and didn't let go until the bus was lifted. >> protect and serve. look at that. time, now, for a wrap-up of your thursday night football. here's espn news. >> good morning. atlanta falcons looking to make a push towards the playoffs. taking on a weak jacksonville jaguars team. head coach, mike smith, back on the field, with the falcons, after being hospitalized with chest pains after last week's . early first quarter. finding julio jones. and running in for a touchdown.

easy does it. there will be plenty more scoring for atlanta. second quarter. first and goal for michael turner. five-yard touchdown run. 48th of his career. most in falcons' history. later in the second, ryan to roddy white. white's fourth-straight game with a t.d. catch. falcons, 24-0. you see where this is going. later in the second, blaine gabbert is stripped. both teams fighting for the ball. and curtis lawson ends up with the pigskin. falcons take a 26 27-0 lead into halftime. third quarter, gabbert stripped by abraham. he was awesome. 3 1/2 sacks. two forced fumbles. c cory peters in the end zone, untouched for the t.d. later, ryan to white. three t.d. passes for gnatty ice. they win it 41-14. don't forget, for all your sports action, join us for "the

highlight express" here on espn news. one nfl matchup this weekend already getting a lot of attention. this one is tom versus tim. >> tom brady versus tim tebow. a clash of two guys with proven skill on the field. but complete opposites off of it. >> complete opposites. one dated actresses, then married a supermodel. the other, a proud virgin. one swears like a sailor. the other probably wouldn't think of it. brady is having a solid season himself. there's the tebow famous pose, right there. good luck, guys. coming up next, "the pulse," and christmas wishes from the white house. and the incredible scene, as daredevil kayakers take this plunge. sarah, will you marry me? i think we should see other people. in fact, i'm already seeing your best friend, justin. ♪ i would have appreciated a proactive update on the status of our relationship.

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bit. >> isn't it unbelievable how you look at the president and think, they're grayer and grayer and grayer. >> and him, just three years. you can imagine what it would possibly be in eight. >> second term. >> before and afters are stunning, too. >> the girls are so beautiful. they're so tall, though. >> just like mom and dad. well, a teenager in stockton, california, is bracing for a lifetime of santa jokes, after he got himself into a very precarious position. >> he got stuck trying to come down the chimney that leads to the fireplace in his bedroom. firefighters had to use ladders, ropes, grease, and even remove part of the chimney to get him out. >> the family first said that the teen was trying to sneak in after curfew. but later they said, he was only cleaning the chimney. his friends say they're never going to let him live it down. i believe the curfew story more than the cleaning. >> the cleaning the chimney is not going to fly. >> wouldn't want to mess with that guy. cleaning the chimney. a little late trying to sneak

in, santa style. >> sneak in santa style? come on. and it was not a world record. but it was a thrill of a lifetime for three death-defying kayakers. >> the daredevils went to the edge of a raging waterfall in alabama. then, took a 90-foot plunge, one after another. all three made it to the bottom safely. skillfully maneuvering the nine-story drop. >> look at that. nine stories. and one of the kayakers described the experience as one of the most terrifying things ever. >> i guess. i guess. >> duh. think it's going to be easy-breezy going off a 90-foot waterfall? scary. >> dangerous. scary. coming down like that, how do you maneuver it so you land -- >> kayaks are so light. i don't know how you would -- you know what? they're braver folks than you and i out there. >> no. >> i'll be at the bottom, taking the pictures. >> i'll man the camera. for some of you, your local news is next. >> for everyone else, the late-night comics take on, yep,

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updating the day's top stories now. iowa voters are weighing the closing arguments made by the presidential candidates, during last night's final debate before the caucuses on january 3rd. the federal government will stay open past midnight tonight. members of congress put aside their differences and approved a trillion-dollar spending package, good for the next nine months. >> shutdown averted, at least for now. and today is free shipping today. it's being offered by more than 2,300 online retailers to deliver your gifts for free by christmas. good deal. looking at today's weather. strong santa ana winds around l.a. and san diego. thunderstorms for the gulf coast and texas. >> also, some snow around the great lakes. showers in d.c., down to atlanta. finally from us this

morning, the stinging satire from the late-night comics has lately been directed at politicians, predictably. >> that's right. but also this week, the funny men were keeping an eye on us in the news business. >> this week, cain sat down with barbara walters, as one of her ten most fascinating people of 2011. >> what kind of cabinet position would you like if it were possible. >> the department of defense. >> what? [ laughter ] >> that was so ballsy -- that was so ballsy, it made barbara walters do the equivalent as a spate take. the lady's been on tv since tv started. >> christine o'donnell. remember her? the one that used to be a witch. she is back. and today on cnn, she endorsed mitt romney. >> some people say that mitt romney isn't the most consistent candidate because he's changed his mind about big, important

issues over the years. >> you know, that's one of the things that i like about him because he's been consistent since he changed his mind. [ laughter ] >> you can't argue with that. >> seven candidates, ready to make their final push in the hawk eye state. newt gingrich has seen a surge in the polls. but that support may be fading. >> did you catch it? it flies by for about half a minute. but for mitt romney, they used a photo of president obama. [ laughter ] it's an easy mistake. they have the same popularity among republicans. to make it up to mitt romney, you have to accidentally put up the wrong picture for every other candidate. maybe for rick perry, you go with george bush, as played by josh brolin. ron paul? maybe a dried apple doll. gingrich, a bob's big boy. michele bachmann? a lemur. rick