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tv   Special Report With Bret Baier  FOX News  December 18, 2014 3:00pm-4:01pm PST

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ever seen. we should send it over to north korea. it swims like a fish, it oscillates, it's very cool. >> you know who else has a shark drone? mark cuban. >> that's if tore t for us. this is bret baier. we have news tonight. cuba's dubious human rights record will not be part of the official initial discussions on restoring diplomatic relations with the u.s. but we begin on wall street, where the dow had its biggest day in three years. the dow jones industrial average skyrocketed today 421 points. the s&p 500 gained 48. the nasdaq surged 104. let's find out just what's going on now from our sister network, fox business network's maria
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ba bartiromo. >> the federal reserve met in its final meeting of the year and kept their pledge to leave interest rates low tore a considerable amount amount of time. as a result, people are looking at the stock market as the stock market for their money. china is slowing down from its peak levels, europe is also deteriorating and couple the low interest rate story in the u.s. with the fact that corporate profits are doing well and you have to own u.s. stocks, just very few alternatives. today one catalyst was better than expected earnings from oracle. that put the technology sector on fire, again leading to speculation and the suggestion that the corporate sector in america is the best game in town, as the rest of the world
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falters. one risk i would point out is that even though things in the u.s. are doing well and we are looking at economic trends that are improving, it's hardly gang busters. we're looking at an economy growing at a pace that is below expectations. as we see from poll after poll, investors really don't feel so great. so the economy is good but not good enough to actually trigger the federal reserve to raise interest rates, meaning there are just very few alternatives for people's money away from u.s. stocks. >> it's interesting to see the price of crude plummet and how that is, you know, the response on wall street. but look into your crystal ball. what can we expect tomorrow? >> look, i think there's a lot of momentum in this market. we probably will see further buying. remember, it is end of year so this is the time of the year that portfolio managers look at their portfolio and say have i missed anything? if i didn't, i want to get in now.
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perhaps that is going to give us a little more fuel going into year end. >> as always, thank you. don't miss maria on our sister network. log on to fox business.com/channeled finder. the head of the irs said budget cuts from congress could force him to shut things down temporarily. johns cou johns could -- john koskinen says he made be forced to but can't say yet. >> the deadly serious political fight over a movie that was supposed to provoke laughs, not death threats. good evening. >> another movie, this one
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starring steve carell has now been cancelled as well. as the fallout intensified over tony entertainment dropping the movie "the interview" under duress, president obama's aides edged closer to pointing the finger at the dictator kim jong-un. >> this is something that's being treated as a serious national security matter. there is evidence to indicate that we have seen destructive activity with malicious intent that was initiated by a sophisticated actor. >> spokesman josh ernest repeatedly refused to name north korea. as unlikely bedfellows all slam sony for caving and potentially setting a precedent that will squash other art.
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mccain also hit the president by declaring "the need for sony pictures to make that decision ultimately arose from the administration's continuing failure to saturdaisfactioorily address the use of cyber weapons by our nation's enemies. >> if we see something we think is credible, we'll alert the public. for now my recommendation would be that people go to the movies. >> reporter: white house aides today tried to say it was a full-throated endorsement of sony. >> i got the question the question was about the concern about -- >> it was but i think it was also a show of support for artists and other short making films, including the artist who made this film. >> reporter: the "daily beast" reports that -- administration
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officials today said they did not underestimate the fallout from north korea because they were merely making suggestions to sony and not dictating what to do. meanwhile several theaters around the country had planned to show the 2004 comedy team america world police as a replacement but paramount pictures has snuffed that out since it also mocks the regime. the state department tried to pour cold water on them saying that they only relaid messages to the company. >> plenty of loud criticism tonight over president obama's moves to restore relations with cuba, but there is surprisingly little talk of doing something concrete about it. we have fox team coverage tonight. we go to havana with what cubans are saying about those changes. but we begin with chief washington correspondent, james
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rosen, at the state department. >> good evening. from a festive department of state where you might hear music in a bit because there's a holiday performance under way behind me, we got a our first explanation today of what will be on the table when these talks commence and what will not. when assistant secretary of state roberta jacobson arrives in havana next month to read the first formal talks on the restoration of diplomatic relations that president obama announced this week, she will raise cuba's abiz mat human rights record but will not formally link the subject to the normalization process. >> i do not necessarily think that we're talking about direct human rights conditionality in the restoration of diplomatic relations. >> reporter: she also said secretary of state kerry is not prejudging the outcome of the review president obama asked him to undertake, whether cuba should be taken off the state
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department's list of terror sponsoring nations. rather she said kerry will follow the fact zplps we have to look at whether they have renounced the use of terrorism. we have to look at their ratification of international instruments against terrorism. >> conservative, including prominent cuban americans, continue to lambaste the president for not extracting more concessions. >> he has betrayed -- betrayed those cubans that have worked so hard and sacrificed so much for the freedom and liberty of the island. >> otto rice served as assistant secretary of state during the first bush/cheney terms and advocates for greater isolation of the regime. >> you can imagine their position and their glee when the envoys say we'll give you all these things and you only have to promise us that at some point in the future you might consider becoming democratic. >> reporter: even "the washington post" editorial board, which twice endorzed mr.
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obama for president blasted him for bailing out the castro brothers, saying he granted the regime everything on their wish list that there was to grant and it will eliminate u.s. leverage for political reforms. and officials here at the state department where the holiday festivities are in full swing told reporters today it will only be a matter of weeks before the executive authority changes. however, they also made clear they will not be naming an ambassador to cuba until an embassy is oaf p opened in havana first. >> wow, that is festive. james rosen at the state department, grab a bell. >> i shall. >> there is another possible outgrowth of restoring relations with cuba. fugitives could be extradited. the most notable is a woman who
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escaped from prison and spent more than 30 years in prison. let's find out what cubans think of this new policy. steve? >> reporter: bret, almost all have been surprised by the move, by the 83-year-old leader, raul castro, a lifelong communist, castro has made a 180-degree turn by reaching this agreement. many people thinking his hand has been forced by recent events. cuba's economy really in trouble and previous sources of aid, russia in the 1990, more recently venezuela, they've both
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really dried up as far as options go. there is a risk, though, for the cuban government. they have long been able to blame the u.s. embargo for any economic problems. they've been able to do that for the past 50 years, they can't do that anymore. in the short term that embargo will be in effect but could be very weakened in weeks to come. money brought into the country, money brought out of the country, as well as travel for ordinary cubans, something they have not been able to enjoy for the last half century. >> always nice to see those 50s chevys driving around. >> vladimir putin says the u.s. is still poking the russian bear. fox 25 in boston with the first court appearance by accused marathon bomber dzhokhar tsarnaev since july of last year. his trial is set to begin january 5th. his defense says it plans to ask for a delay.
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fox 11 in los angeles in a horrible accident in redondo beach. a driver hit a group of pedestrians outside a church christmas service. three people were killed there, including two women in their 80s. at driver was charged with manslaughter and dui. and this is a live look from tampa on fox 13. one of their big stories, a dynamic dastardly d florida walmart. one guy takes a heart attack while the other steals a cart full of toys and they walk away. later, they were both arrested. we'll be right back. goodnight. goodnight. for those kept awake by pain... the night is anything but good. introducing new aleve pm. the first to combine a safe sleep aid. plus the 12 hour strength of aleve. for pain relief that can last until the am. now you can have a good night
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hello... i'm an idaho potato farmer and our big idaho potato truck is still missing. so my buddy here is going to help me find it. here we go. woo who, woah, woah, woah. it's out there somewhere spreading the word about america's favorite potatoes: heart healthy idaho potatoes and the american heart association's go red for women campaign. if you see it i hope you'll let us know. always look for the grown in idaho seal. big changes could be in store for the secret service. a new report out today calls for fresh outside leadership at the agency, which has had a series of problems. it also recommends raising the
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fence around the white house perimeter and curving it outward. homeland security chief jay johnson calls the findings astute, thorough and fair. >> joint chiefs chairman general martin dempsey says three key islamic state leaders in iraq have been killed in recent weeks. one of them is said to be a deputy to isis leader baghdadi. >> maoscow's economy is in the tank. but amy kelly tells us a long-winded putin today blamed the u.s. and its allies. >> reporter: president vladimir putin had a message -- everything will be all right. there could be two more years of economic uncertainty, he said, but russia will pull out of the situation, which he did not call a crisis.
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putin said that outside forces provoked the troubles, but he also blamed russia's own failure to wean itself off the sale of oil, which the price of which has plummeted. when asked if a currency collapse was the price to play for annexing crimea, he said, no, the west has been trying to bring russia to its knees since the end of the cold war, that they wanted to turn the russian bear into a teddy bear. >> maybe the they should just sit still and eat honey and buries and leave him in peace. but they will never leave him. they will always put him in a cage and tear out his claws and fangs. >> reporter: a white house spokesman said such comments are not an accurate description of the western nations or their intent. the russian ruble is at about 60, making goods twice as
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expensive. some car manufacturing stopped selling cars. but there is no sign that putin's popularity has taken a hit because of this. >> i'm afraid he's winning. >> reporter: putin has been elected russia's man of the year for the 15th year in a row and his popularity rating is about 80%. now pundits are asking what will happen if prosperity dries up? >> amy kellogg in london. thank you. still ahead, judge andrew napolitano and charles kra
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krautheimer on the panel.
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tonight we continue our profiles of possible 2016 presidential contenders. outgoing maryland governor martin o'malley had a very busy fall, so busy in fact many believe he has bigger plans. in the leadup to november's mid-term election, he campaigned heavily for democrats in key primary states. >> new hampshire needs to send jean shaheen to the united states senate to work for them. >> reporter: anthony brown's trouncing ended up being perhaps the biggest gubernatorial loss across the country perhaps for
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democrats. republican larry hogan will be sworn in in january. >> o'malley was cited as the main reason why. if you can't be supported by your own home state people and your choice as successor as governor is defeated pretty solidly by a republican when there have only been three republican governors since 1966, it doesn't speak well for you. >> since that defeat, o'malley has kept a low profile, including denying our repeated request for an interview. many argue he's still a 2016 contender. >> he has worked himself up through baltimore and to governor. he is a very liberal democrat, he is young, he is clearly ambitious. look, the fact that larry hogan, jr. won the governorship in maryland does not eliminate martin o'malley from consideration. >> back in june he received a
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warm reception at the iowa democratic party state convention. >> let us achieve like americans again, let us lead like americans again and let us believe in american again. in ourselves, in our nation and in one another. >> reporter: meanwhile, o'malley's political action committee, the oh say can you see pac -- >> he was cutting the cost of statewide government because sometimes you need to prune the present to foster growth in the future. >> o'malley's political career began when he worked on the 1984 presidential campaign of gary hart. he then worked for senator barbara mikulski and later moved to baltimore where he became a city council member and eventually the white mayor of the predominantly african-american city. he focused on reducing overall crime rates in struggling
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neighborhoods. in 2006 he was elected governor where he raised the minimum wage, legalized medical marijuana, granted in-state college tuition rates to immigrants and enacted gun control laws. >> i think we have too many guns and too much killing. >> reporter: he abolished the state's daept calling it wasteful and ineffective at deterring crime. >> what kind of society do we want to be? >> and in 2012, he signed a bill legalizing same-sex marriage. >> the way forward is always found through great are respect for the equal rights of all. >> but the economy has been bumpy. taxes have risen under o'malley, including a controversial gas tax hike last year. >> a rain tax, a flush tax, higher costs for health care, for being born, for dying, trips, slips, fishing, flip
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flops, tube socks, purses, rollerskates, p.j.s, diapers, hats and book bags. >> o'malley has been at odd with president obama at times, particularly on immigration. >> we do not turn our backs on innocent children who arrive on our door steps fleeing death. >> he has has since announced support for president obama's executive order. an overwhelming 73% of likely voters did not think he would make a good president, but his biggest challenge to overcome? hillary clinton, should see, as expected, troos to get m the -- >> for the past eight years, you've had a great team, the o'malley/brown administration! >> obviously clinton's decision is the biggest factor in the democratic primary. next up in our series of
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presidential contenders, texas republican governor rick perry. in other regional news, the fec is rejecting a petition to ban the use of the name of washington's nfl team on tv and radio. a legal activist likens the use of the word "redskins" to broadcasting obscenity. the s.e.c. objects that argument saying obscenity implies sexual or torrid in nature. the team has been under increasing pressure from various groups and some lawmakers, including the incoming senate minority leader, to change that name. >> a young man with a name fit for a king in trouble with the law. we'll explain. and spending a billion dollars of your money to not find out how the environment affects children. the grapevine is next. ♪
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now some fresh pickings from the political grapevine. a former official from veterans affair is accused of steering millions of dollars of works to friends. they say iris cooper awarded $15 million of contracts to a company partially owned by a friend. it gets worse. cooper no longer works at the v.a. she is now the senior procurement official at the
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treasury department, handling more than $5 billion in federal contracts. she left the v.a. before the i.g.'s investigation was finished so no punishment has been recommended. cooper's lawyer tells "the washington times" she strongly disagrees with the i.g. report. you and your fellow americans have spent more than $1 billion not to find out how environmental factors affect children's health. the national institutes of health is finally pulling the plug on the study ten years and $1.3 billion later after concluding it will not work the study was supposed to track 100,000 children from birth to age 21, but it never got off the ground. the past 14 years were spent trying to design a model to make the study feasible, a goal that was never achieved. according to investors business daily, warnings about the program have been raised in the past, only to have congress fund it anyway. the nih director said the goal
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of looking at the effects of environmental factors on children is worthwhile. we do not normally do local police blotter reports here but tonight a seemingly minor break-in at a st. louis convenience store. st. louis is of course home to anheuser-busch, maker of the beverage marketed as the king of beers. the "post dispatch" newspaper reports a felony burger -- burglar was found climbing out of the facility named bud weisser. >> howard kurtz tell us us what's being said tonight.
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>> reporter: hollywood is seething with anger over sony's decision to pull the film after hackers threatened violence over movie goers, with celebrities denouncing the blow as free speech. >> wow, everyone caved. the hackers won. >> steve carell, "sad day for creative expression." critics say sony was reckless to make such a film showing kim jong-un's head being blown up. >> they need to have some back bone to do the right thing! >> the coverage focused on gossipy e-mails about angelina
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jolie. >> they called her a spoiled brat. >> hackers who have threatened violence because the studio just wants to exercise the same first amendment right that everybody else does, studio just wants to release a movie, have stolen this material and now the press is selling it out of the back of a truck. >> reporter: but the hacking also produced such news as a producer making racially tinged jokes about president obama and that some didn't worry about privacy after edward snowden's nsa leaks. they granted him asylum abroad. the company could uphold the idea of free speech by releasing the film online or on dvd but has no plans to do so. brad? >> howie, thanks.
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the u.s. government is taking this attack very seriously as an attack on a company, it's an attack on its employees and frankly it's an attack on the freedoms that we enjoy in this country. we're reviewing a range of options for how we will respond to this attack. >> we'll be vigilant. if we see something that we think is serious and credible, then we'll alert the public. but for now my recommendation would be that people go to the movies. >> the president is saying go to the movies. you will not be able to go to one movie "the interview," after sony said they are not releasing
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this movie on christmas day under duress after these threats. critics are saying the president should have stood behind sony and said if you wanted to show the film, we've got your back essentially. you heard in howie's piece a number of actors weighing in. "cancelling the interview seeps li -- seems like a pretty horrible precedent to set." let's bring in our panel, jud. what are your thoughts? >> their decision was utterly gutless and utterly cowardly. they should have distributed the film and let the theater decide. the federal government has a profound obligation to protect
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the nation from physical invasion, as well as cyber invasion. it has a profound obligation to protect our freedom of speech. but this movie was crushed because it's a satire about a monster, a person we have every right to criticize and mock is totally alien to the american tradition. if you're that company, sony, and you're hearing from theaters saying we're worried, you know, these threats are out there -- >> some of the fears are real. look at what happened in araura, colorado. if i'm sony, i'd put this thing on youtube and everybody who wants to watch it, watch it. if i'm the president, i'd save put it in the theaters in d.c. because i'm going to bring my wife and daughters to watch it. >> i find it hard to believe there wasn't another way for sony to handle this. i feel the security is up to the
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theaters. if they're worried about it, they don't have to show it. for sony to yank it means the hackers won. that's exactly what they wanted. i think it's really bad. why couldn't they have distributed dvd copies for free or put it on youtube. there are other ways to do this that would have upheld the principle and still outweighed the risks. >> newt gingrich said stand up, the hackers are winning. >> i'm not sure i would have showed it at the white house. the security has been a little spotty lately. >> this is a japanese company, don't forget. >> i think this is not sort of rocket science. it new ones the threat was made and the theaters were not going to show it because they've got lawyers who say they would be sued if anything happened, what sony had was a very easy option. it knew it was going to lose the money to put into it. i think it was $40 million. it has lost a lot more than that
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in a lot of other movies. so you write it off, you're never going to get it, you can release it six months and it's not going to happen. you write it off and what you do is what the judge said. you put it out on the internet for free so it's a gesture but it doubly screws over pyongyang. the whole idea of doing this was so that the world wouldn't see the movie. now the world would see it in far larger numbers than it ever would if it were a paying proposition at the theaters. so i think it would have been punishment for the north korean regime, it would have been a gesture and it would have shown that we can get you back. look, you could also do it by having some kind of guarantee from the federal government, everybody will be safe. but if you're going to go to the movies with your family on christmas, are you really going to want to go to a movie that you wouldn't have gone to anyway? it's not exactly a comedy
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about -- a comedy about north korea is not exactly a great draw. >> nick writes in "sony is a japanese company, how did this hacking become our problem?" >> because it was released in the u.s. these cyber attacks are increasing by the day. you've been very critical of the nsa. but will is a side of the nsa that is a cyber defense what is said to be crucial. i did a piece at the nsa with outgoing director keith alexander and he talked about some of the issues. take a listen to this. >> what we can take is realtime capabilities and defend our networks from threats coming at them. at the same time we see those threats going towards clear defense contractors and other critical parts of our history. but we have no mechanism for sharing information back and forth in realtime.
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so that means if a missile -- take the physical analogy. a missile coming into a military installation, we can shoot it down. but if it's going into civilian population, we have nothing that we can do other than let the missile hit and talk to them about what they can do to clean it up. >> so he's saying their hands are tied, they can protect government. >> they should be able to protect us without spying on us. now, i don't know the technology of how that would work, but a part of their mission is absolutely necessary. in terms of this being a japanese company, it's possible the fbi knows more about this than they're letting on and this is something between north korean black mailers and sony executives in japan. we don't know. >> maura, what about the role that we are increasingly facing this cyber terror threat? >> it's going to get worse. there has to be a way to harden networks and these companies,
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number one. i'm not sure how you do that. >> alexander was saying back then and they still say now, the current nsa director, that there isn't legislation that enables them to provide all they can to civilian companies. there is -- they can do a lot for government agencies and government computers -- >> right. you're saying that the government eaves anti-cyber attack capabilities is so far advanced from anything in the private sector, that sony could go out and buy from some security company -- >> they can see it coming. the one that failed on capitol hill -- >> well, there has to be a way if the government has the ability to defend, there has to be a way to get that into the private sector. >> but we have these cycles where we have a period of quiet, a period of safety and we get all squup set about nsa
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intrusion into our lives, this is the government spying on us. in the grown up world there's a trade-off between security and liberty. can you pretend, as obama does, that there's no trade-off. there always has been. there has been since the beginning of time. we're seeing the results of these kind of attacks. it starts with a movie studio, which in the scheme of things is trivial, but it can hit our power stations, our nuclear facilities. it this would be a catastrophe for the country on a pearl harbor scale. i think we have to grow up as a nation and say if it takes the nsa intruding, of course with the consent of the companies involved, we're going to have to accept that or live under this damocles. >> the relationship between liberty and security has to be a bias, not a balance, a bias in
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favor of freedom. you can sacrifice your liberty, but you can't sacrifice mine. >> what happens if the banking system is wiped out and the country is absolutely immobilized. >> i don't know why we would have to sacrifice liberty in order to keep the banks safe. >> because they're going to have to trust the government not to overstep. >> why is the government the only one? >> they have the resources, they have the facilities, they have the experience and -- >> no one can trust the government to restrain itself because it can't. >> it's protected you ever since the american revolution. >> next up, is president obama going overboard with executive actions? [ narrator ] mama sherman and the legion of super fans.
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he is using a lot more executive action than his predecessors, right? >> well, i think there is no doubt that the president has sought to use his executive authority to move this country forward within the confines of the law. oftentimes in the face of congressional inaction. that i wouldn't disagree with. >> why did he make this public claim there is criticism that i'm acting on executive basis and i'm doing that, you know, less -- othe lowest level in 100 years. that wasn't really true, right? >> it was true because the number of executive orders that this president has issued is lower, as you pointed out, than executive orders thaive issued by many of his previous predecessors. >> that's a law. the administration, democrats saying he has issued far fewer executive orders than any two term president in the last 50 years. well, when you look at the stats, yes, that is true. it is far fewer executive orders in the blue. but when you add up the
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executive memoranda, it's 195 orders and 198 memoranda. we are back with the panel. judge, i mean, this immigration action was not specifically an executive order. it was a bunch of memos that told agencies what to do and not to. >> key phrase in what josh ernest just is said to our ed henry within the limits of the law. the immigration orders that he issued, whether he calls them executive orders or executive memoranda a rose by any other name would smell as sweet. he can call it what he want were not within the limits of the law. he neutered the law and he made up the law. he basically said i will tell you how to avoid deportation if you do a, b, c, d, and e. and he made up the a, b, c, d, and e. with respect to cuba, however, with respect to reestablishing foreign relations with that country, normal diplomatic relations whether you like that idea or not, the courts have been very clear that is exclusively within the province of the president. >> sure. but he cannot lift the
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embargo by himself. >> he probably thinks he can or wishes he could but he absolutely cannot if he tries to tinker with that that's a statute that congress enacted. >> it's interesting, mara. two different parties look at the next poll how is government working? how is the federal government is working? broken 65%. 2% just okay. pretty well 5%. the democrats say well, this is why the president has to issue the executive orders and executive actions. the republicans say no, these people want us back to a constitutional following the rules and congress plays a part. >> well, i think that what people want and we saw this in the exit polls in the election, people want the government to function. they want both parties to work together and they want them to compromise on things. it's interesting in that bar graph you put up before, he has issued more exmemorandum than think other presidents. the bar in total for executive actions and memo disum still below other presidents, including jimmy carter. he still has a ways to go. he has two years left and is he planning to be very, very
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busy. he has not made a secret of this. they have said over and over again, we are going to do everything we can with every power that we see he legally has to do as much as he can. and that's what he is doing. cuba was no different. >> look, this is quite clear, the president came in as an extremely ideologically ambitious man. he said he was going to change america. he was very open about it first state of the union address he talked about changing education, energy, healthcare. he succeeded in congress with healthcare. he did not succeed with anything else. cap and trade did not succeed. he loses the house, which means he loses control. he has no chance of enacting anything sweeping again after healthcare. and he decides to spend the next six years trying to get his agenda enacted by executive order. which is why he oversteps everywhere. and when you say it's not -- the federal government isn't working, what's the definition of working? sweeping change of our
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immigration laws in a country that has not decided how it actually wants to do that it's working exactly as designed with the power of the president is checked and what obama is doing is destroying that balance. >> judge, it's going to be challenged in court. >> absolutely going to be challenged in court. >> all right, judge. thank you. panel, thank you. that's it for the panel. stay tuned for a look at white house holiday celebrations. thanks. ♪ [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly.
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great job. (mandarin) ♪ cut it out. >>see you tomorrow. ♪
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catering many washington parties as one late night show tells us, the white house pulled out all the stops this year. >> the holiday season is in full swing at the white house. over the course of several weeks, pastry chef susan morrison and her talented team constructed a 400-pound edible white house replica in the east room. they paid a visit to cia headquarters where they assembled a ginger bread replica of the black site interrogation room.
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seasons greetings from the white house. >> it wasn't us that one is for you, judge. >> thank you. >> thanks for inviting us into your home tonight. that's it for "special report," fair, balanced and unafraid. greta goes "on the record" right now. tonight, espionage and the mystery is deepening by the minute. sony attacked but who hit sony and why? it is the worse cyber attack ever launched on an american business. outrage is growing. u.s. officials link north korea to the hacking of sony pictures. but the fbi is not yet officially blamed north korea. meanwhile, sony canceling the release of the interview after terrorist threats against movie theaters and now experts warning sony's surrender could lead to more cyber attacks and critics blasting sony for caving to terrorists. >> look at this. >> kim jong u.n. wants to do a interview with dave skylark. >> he is a fan. look at him. if that ain't a real story, i don't know what is. >> okay, let's do it. >> the so

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