hate vote victory. the closest caucus votes in iowa as mitt romney beats santorum by the slimmest of margins. rick perry is headed back to texas reassessing his campaign following a disappointing finish in iowa. this is the "cbs morning news" for wednesday, january 4th, 2012. good morning, everybody. thanks for joining us. i'm betty nguyen. if the iowa caucuses were a horse race, the result can only be described as an unlikely photo finish. mitt romney who had just about written off iowa won by a nose

with the recently surging rick santorum right on his tail and iowa may have claimed a political casualty. rick perry, following a fifth place finish, he says he is reassessing his campaign. here are the numbers. a record 122,255 straw poll ballots were cast last night. in a truly amazing finish, mitt romney beat rick santorum by just eight votes. ron paul finished third, followed by newt gingrich. susan mcginnis is in des moines with more on this race. some people were surprised at rick santorum. >> reporter: yes, absolutely. that was unexpected really. this was quite a nail-biter and really something to watch throughout the night. the closest vote, like you said, in iowa caucus history. in the end mitt romney wins to be the challenger to president obama, at least so far, and he

has won by the slimmest margin ever. mitt romney barely squeezed out a win in iowa, with rick santorum trailing just eight votes behind. >> we are going to change the white house and get america back on track. >> reporter: the former massachusetts governor is pledging to keep the momentum going in new hampshire where he holds a solid lead. >> out of new hampshire, let's get that job done. >> game on! >> reporter: but santorum is also ready to compete following his surprisingly late surge in eye ha. >> i've been to new hampshire. >> reporter: ron paul placed third but still considers himself a winner. >> we will ggo on. we will raise the money. i have no doubt about the volunteers. >> reporter: for some, iowa could be the end of the road to the white house. after coming in a disappointing fifth, rick perry is heading back to texas to reassess his

campaign. >> with a little prayer and reflection, i'm going to died the best fast forward. >> i'm convinced the republican party will pick an era of reagan committed and somebody with a track record of changing washington. >> reporter: newt gingrich is hoping to jump-start his bid today in new hampshire, while michele bachmann is heading straight to south carolina. >> there are many more chapters to be written on the path to our party's nomination. >> reporter: she is gearing up for the first in the south primary there later this month. and romney could get a big endorsement. republican officials saying john mccain who won new hampshire twice and the nominee in 2008 is going to endorse mitt romney. for now, they are all moving on to new hampshire. no time to rest. >> we will be watching. susan mcginnis in washington, thank you. cbs news questioned iowa voters as they entered the caucuses last night. 42% said the economy was the most important issue and of

those who thought the economy was the most important issue, 34% cast their ballot for mitt romney. 46% of those questioned didn't decide on who they would vote for until the last few days. of those late deciders, 33% decided to go with rick santorum. our cbs news team has much more analysis on what happened in iowa and where the candidates go from here. jan crawford is with mitt romney's campaign. wyatt andrews is with ron paul and dean reynolds is following newt gingrich but we cover with john dickerson who is covering rick santorum's campaign. >> reporter: is the momentum candidate. he was expecting to be speaking to an empty balanlroom but it's chaos here. he is the person mitt romney has to worry about now. he sort of the alternative to mitt romney in the race. he, hopefully, will get some money and go into new hampshire where he has an organization and hope he can weather both the

attacks from mitt romney and the other candidates but the press that will come with being cofront-runner are mitt romney. south carolina is stronger territory for santorum so you could see this go on for a few more contests. >> romney really kept expectations low here for months and then the campaign started to gradual increase them over the past week. so we saw a much more confident mitt romney coming out and saying he wanted to win iowa. he said he thought he could win, i think he was talking more about the general election but no question they thought they would do well here. they did do well here but didn't get the big win they wanted but he'll be able to take this momentum and go on to new hampshire where he is expected to do very well. he has a commanding lead there. this week, the tone will change dramatically. you're going to see everyone going after romney. the question is how is romney going to stand that heat. >> you have to rate this as a very, very good night for ron paul. ron paul ran especially well

among young people, believe it or not. they were a big part of his base. he ran strong among first-time caucus goers who tend to be young people. he ran most strongly in iowa on the issue of reducing the federal deficit. ron paul clearly has the strongest message and strongest promise to tackle the federal deficit and produce a trillion dollar worth of spending cuts in his first year in office and that is a very red meat issue here in iowa. >> all of the ads that ran in iowa, 45% of them were attack ads against gingrich, so he is going to continue to complain about that and criticize romney in new hampshire and, of course, in new hampshire, they have two more debates and that is the forum in which he excelled. he is really focused on south carolina. that is a much more receptive audience to gingrich. his polling is much better there.

he believes that will be his springboard to states like florida and the super tuesday states. >> stay tuned for "the early show" this morning. we will have more analysis of the results from the iowa caucuses and continuing coverage on the "cbs evening news." the campaign now moves to new hampshire which holds its primary next tuesday and mitt romney is heavily favored. but former utah governor jon huntsman has been concentrating his efforts in new hampshire and is counting on a strong finish there. huntsman did not campaign in iowa. instead, opting to meet with granite state voters last night. president obama travels to ohio today where he will speak about the economy in cleveland. last night, he teleconferenced with supporters in iowa. mr. obama talked about the progress he said he has made during his first term and asked party activists for their help just ahead on the "morning news," tension rising in the persian

gulf as iran wraps up war games with more threats against the navy. but first, scott pelley with a preview of tonight's "cbs evening news." there's new research in the war against cancer and we will hear from two young survivors about their lives and their futures after treatment. that's tonight on the "cbs evening news." loves that cushiony feeling. uh oh. i gotta go. [ female announcer ] and with charmin ultra soft, you can get that same cushiony feeling while still using less. its design is soft and more absorbent. so you can use four times less versus the leading value brand. ah. [ female announcer ] charmin ultra soft. v.o: the cinnabon taste you've always loved can i, can i (repeated) v.o: can now be enjoyed in your coffee ( can i, can i (repeated) ) v.o: only international delight v.o: put's the real flavours from v.o: your favourite treats inside when bp made a commitment to the gulf, we knew it would take time, but we were determined to see it through. today, while our work continues, i want to update you on the progress: bp has set aside 20 billion dollars to fund economic and environmental recovery.

we're paying for all spill- related clean-up costs. and we've established a 500 million dollar fund so independent scientists can study the gulf's wildlife and environment for ten years. thousands of environmental samples from across the gulf have been analyzed by independent labs under the direction of the us coast guard. i'm glad to report all beaches and waters are open for everyone to enjoy. and the economy is showing progress with many areas on the gulf coast having their best tourism seasons in years. i was born here, i'm still here and so is bp. we're committed to the gulf for everyone who loves it, and everyone who calls it home.

can boldly satisfy any craving. share an appetizer, then choose two chili's entrees, like our classic bacon burger or our famous slow-smoked baby back ribs. chili's $20 dinner for two. the u.s. is brushing aside iran's blunt morning to keep american aircraft carriers out of the persian gulf. the threat was made in response to tough u.s. sponsored economic sanctions against iran for its nuclear program. david martin assesses the latest tough talk. >> reporter: iran wrapped up ten days of naval exercises by warning the u.s. not to send an aircraft carrier back into the persian gulf. it may sound like an empty threat. but it's also clever propaganda. the "uss stenis left the gulf last week headed for home and won't be back any time soon so

the iran can claim the stenis didn't dare return but the lincoln and the benson on the way to the region and one is scheduled to take part in exercises inside the gulf. as they have in the past, the iranians could harass the carrier with go fast boats as it is in the channel of the two-mile hormuz. over the last two days, iran showed off ship missiles and submarines and hydrofoils to back up a claim they surely don't believe. the tankers carry one-fifth of the world's oil would be, quote, easier than drippink is a glass water. what would happen to their economies if a vital choke point in a middle east oil became a war zone? it's one of the few cards iran has to play to discourage the rest of the world tougher

economic sanctions against its nuclear program. sanctions already in place are taking a toll on iran's economy. the price of oil is sent up nearly $4 a barrel so the threats may be empty, but they are not meaningless. david martin, cbs news, the pentagon. on the cbs "moneywatch," stocks start off on the right foot in 2012 and some coffee lovers have to dig deeper with their daily dose of caffeine. ashley morrison is in new york with that and more. >> reporter: asian stocks were mixed on monday. the nikkei added 1% and the hang sang flipped back after making gains on tuesday. wall street is off to a roaring start in 2012 and the first day of trading this year the dow was up almost 180 points while the nasdaq gained 43. the federal reserve will keep the public up to date on its plan for interest rates. on tuesday, the fed said it will make four announcements a year on how long it plans to keep

short-term interest rates at their current levels. the move could encourage consumers and businesses to borrow money and, in turn, stimulate the economy. carmakers announce their 2011 sales numbers today and toyota is hoping to rebound after a tough year. the auto giant could get some help from consumer reports. the publication named the 2012 toyota camry the top family sedan. the camry has been one of the best-selling cars for decades but it slipped behind several other models last year after the tsunami in japan disrupted toyota's parts supply. the cost of a cup of starbucks coffee is going up for millions of americans. starbucks says it will raise prices by an average of 1% in the northeast and the sun belt region. here in new york, that means coffee drinkers are now paying $2.01 for a small or tall cup of joe. prices haven't gone up in those places in about five years. starbucks is raising prices to offset the rising cost of commodities.

betty? >> that's a way to ring in the new year, costing us more money already. ashley morrison in new york, thank you. straight ahead, your wednesday morning weather. and in sports, michigan tries to up-end virginia tech in the sugar bowl. >> announcer: "moneywatch" sponsored by vagisil wash, the confident clean. [ female announcer ] fashion or food, it's all about taste. and the chefs at lean cuisine are loving tangy lemon, peppery poblano, sweet butternut. we're roasting, and grilling to create must-have meals with no preservatives. lean cuisine. be culinary chic. to create must-have meals with no preservatives. mid grade dark roast forest fresh full tank brain freeze cake donettes rolling hot dogs bag of ice anti-freeze wash and dry diesel self-serve fix a flat

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today, time now for a check on the national forecast. the latest satellite picture shows scattered clouds in the southern plains and great lakes. while the east coast remains clear. in the northwest, rain on the coast of oregon and washington with snow in the higher elevations. from california to the higher dakotas, high temperatures 10 to 20 degrees above normally. later today, temperatures warm up into the 40s to the 60s after a chilly start in the southeast. in sports, overtime sugar bowl win for michigan. in new orleans, michigan's denard robinson and hemmingway hooked up on this touchdown pass and tied at 20, the hokies thought they had a td in overtime on this great one-handed catch by danny cole! look at that! but he was actually ruled out of

bounds. this 37-yard line field goal won it. michigan beats virginia tech 23-20. in the nba, the lakers won their fourth game in five tries. kobe bryant led l.a. with 37 points as the lakers held the houston rockets without a field goal for six minutes! l.a. beats the rockets 108-99. in chicago, the bulls sneak by atlanta. chicago came back from a 19-point deficit led by 30 points from derrick rose but a layup by luol deng with under four seconds left and that won it for the bulls. chicago beat the hawks 76-74. in college ball, seton hall stunned eighth-ranked connecticut. jordan theodore led the pirates with 19 points and all scored in the second half. seton hall beat uconn 75-63 and the first time that has happened since 2001. when we return, another look at this morning's top stories.

and new details about the suspect arrested in a series of fires in los angeles. plus, how police caught him. okay, team! after age 40, we can start losing muscle -- 8% every 10 years. wow. wow. but you can help fight muscle loss with exercise and ensure muscle health. i've got revigor. what's revigor? it's the amino acid metabolite, hmb to help rebuild muscle and strength naturally lost over time. [ female announcer ] ensure muscle health has revigor and protein to help protect, preserve, and promote muscle health. keeps you from getting soft. [ major nutrition ] ensure. nutrition in charge!

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only easier to carry -- get three for $1.59. on the "cbs morning news," here's a look at today's weather. frosty temperatures spreading down the eastern seaboard into florida this morning. temperatures will rebound by the afternoon. chilly in the northeast and in the midwest and west, temperatures will be above normal. here is another look at this morning's top stories. the closest finish ever at the iowa caucuses. mitt romney beat rick santorum by just eight votes. ron paul finishing third, followed by newt gingrich. texas governor rick perry, who finished a distant fifth in iowa, may be dropping out of the race. perry says he is heading back to texas for prayer and reflection and to reassess his campaign.

new details are emerging about the suspect in the string of more than 50 fires in los angeles. lee cowan takes a look at who the arson suspect is a what led to his arrest. >> reporter: harry burkhart may be his own worst enemy. he was arrested not because he was caught setting one of the fires but the tantrum he had in this courthouse. >> i will not get into the details of any statements he made. >> reporter: the u.s. attorney office says his mother dorothee was arrested. the officials say her son, a german national himself, grew to agitated at one of her hearings, he had to be escorted from court. the next day, the arson spree started and when this surveillance video was broadcast, u.s. deputy marshals recognized the figure

immediately. the man who nabbed him, though, sherman lalazari is being hailed a hero. >> i take a lot of pride in the city and the department and relieved that people can sleep at night and be vigilant but sleep restfully. i went on a ride along with the west hollywood sheriff's station when i was pretty young and loved what i saw and loved what they did. >> reporter: west hollywood's mayor said he was paid just a dollar a year. >> a dollar a year. i'm going to give him the best dinner anywhere on the sunset strip for the extraordinary work he did this weekend. >> reporter: harry burkhart will be arraigned on arson charges later on wednesday. as for that sheriff's deputy, says he can't wait to get back on the job and that dollar a year salary. lee cowan, cbs news, los angeles. this morning, on "the early show," santorum surge and romney

momentum after the iowa caucuses. i'm betty nguyen. and this is the "cbs morning news." that's why there's crest pro-health clinical gum protection. it helps eliminate plaque at the gum line, helping prevent gingivitis. it's even clinically proven to help reverse it in just 4 weeks. crest pro-health clinical gum protection. ♪

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good morning and welcome to 9news now. today is wednesday, january 4th. i'm andrea roane. >> i'm mike hydeck. and it feels like it, that's for sure. we're glad you're here. i'm mike hydeck. >> feels like it is january

4th. >> feels like me, too. >> this was the one cold day so far this winter. people are really complaining about it. >> it is freezing! >> it is frigid. only 17. >> winter. >> good news here, it is going to be another cold day today. we have milder temperatures around the corner. this shot of arctic air is already showing signs of starting to pull out. it is worst it will be right now. sliding away over the next 24 hours. here is a look at our day planner today. it is fridge id. 17 degrees with clear skies. we'll be lucky to be in the mid- 20s by 9:00. might see a couple of flurries this afternoon. not expecting snow showers like yesterday with highs today around 35 or so and winds a different direction in the southwest about 5 to 10 miles per hour. yesterday, we had gusts near 40 miles per hour. we also had some of the snow showers streaming in from the northwest to the southeast. you'll notice some clouds

already to our southwest this morning. so, partly sunny, even mostly cloudy at times today and a cold day. temperatures, these are the air temperatures, not the wind chills. 17 in town. it is 10 in winchester. 11 in frederick and hagerstown. 20 at the pax river naval air station. when you factor in the breeze, not as bad as it was. still enough. we have wind chills down to zero and hagerstown and frederick feels like 9 in manassas and 12 in gaithersburg. high temps today going into the middle 30s. it is 4:27. monika is stepping in with your timesaver traffic. >> the only big thing we're talking about this morning is the construction. good morning, everybody. midweek, it has all begun. if you're planning to head around town, this is what you'll have to deal with is this construction. mainly in virginia on the beltway, you've got it on the outer loop through the tysons area and then again on 66 eastbound and westbound right here at the beltway. so, be aware of that. they should be clearing it up shortly. if you're just heading out the

door getting your coat on and  heading out to the beltway, by the time you get there, hopefully to will be cleared up. be aware of that even on the dulles toll road on the eastbound side at the beltway. let's go outside on the northbound side of i-395 and 95, things are fine from the occoquan river all the way up to seminary road. let's see how that fairs today. we'll go back over to the maps, this time to the north side of town to the beltway. again, construction in silver spring. basically near university boulevard. both loops of the beltway. be aware of that as well. we'll go to another live picture this time in maryland at east-west highway and 16th street. no issues here. in my next report, we'll talk more about construction at 4:39. back to you guys. >> thank you, monika. former massachusetts governor mitt romney has won the 2012 iowa caucuses. he was declared the winner around 2:40 this morning. in the end, a mere eight votes made the difference. and he edged out former pennsylvania senator rick

santorum when the final numbers tallied, romney received 30,015. santorum received 30,008. the has been a long night. susan mcginnis joins us live with the latest on the ground there. >> reporter: good morning, guys. it was quite a nail-biter if you were watching. records were set last night. this is the closest iowa caucus vote ever in the history of the vote over four decades since it has been going on. in the end of course, the opening round looking for the challenger to president obama turns out to be mitt romney and he won by the slimmest of margins. mitt romney barely squeezed out a win in iowa with rick santorum trailing just eight votes behind. >> we're going to change the white house and get america back on track. >> reporter: the former massachusetts governor is pledging to keep the momentum going in new hampshire where he holds a