>> really quick. >> let's recap. >> thanks for watching. see you tomorrow. "special report" is next. the president, the economy, and a familiar script. what's different now? plus a royal baby. this is "special report." good evening, i'm bret baier. by now you heard the news, it has been the focus all afternoon, the line of succession to the english throne is secured. more on the baby boy who will be the king of england in a bit. here in the u.s., the challenge for most second terms, establishing a legacy of a different kind than over in england. to do so, president obama will need to pivot from scandals that

plagued them since the inauguration. and the pivot to the u.s. economy. it is not the first time he tried to do that, either. ed henry has the lead story tonight. >> reporter: even as white house aides reveal president obama's economic address wednesday will just be the first of a slew of speeches that may continue for the next 12 weeks, they struggle to explain exactly what will be new. >> you will hear the president enunciate, provide a vision of where we have been, where we are, and where we need to go. >> reporter: such remarks have been delivered many times before. >> keeping the economy going and making sure jobs are available is the first thing i think about when i wake up in the morning, the last thing i think about when i go to bed each night. >> reporter: republicans suggest speeches will have little impact. >> i argue the policies are in the way, whether obama care or needless regulations that are coming out of the government.

>> reporter: today, wall street reached new record highs, as 39% of economists surveyed by national association of business economics said their firms will hire more in the next six months, near a two-year high. white house aides say speeches give the president a chance to frame the bruising budget debate upcoming this fall as republicans threaten to shut down the government collide with implementing the health care law. >> to vote for any resolution for further fundsing and enforcement of obama care, we can stop it. >> reporter: across the nation, there are budget crises looming on the local level, starting with detroit, which filed for bankruptcy last week. >> so no federal bailout? >> not yet. you know, i know the president has a lot on his plate. >> reporter: others may be on the brink. there are over 100 major urban cities with big debt problems, including chicago. its credit rating downgraded,

thanks to massive unfunded pension liability. aides to the president promised not to let detroit go bankrupt are not using the word bailout but leave the door open to a system. >> we will of course as we do with every city work with them on ways to assist them in their effort as detroit tries to get back on its feet and continues to make progress, but the issue of insolvency is something that detroit and its creditors need to resolve. >> reporter: officials say new policies will be revealed when the president gives civic speeches on things like housing and education, but the bottom line is those details have to wait. tonight, the president is campaigning, meeting with organizing for action, his grass roots group, an outgrowth of the presidential campaign. >> ed henry on the white house lawn, thank you. part-time jobs numbers hit a new record high which may be indication of a new normal. fox business network correspondent rich henson on the

trend. good evening, rich. >> good evening, bret. more americans are working part time than ever before. the latest job statistics show a significant increase in part-time jobs in the past three months. same numbers reveal the economy shed 240,000 full-time jobs in june. some executives in retail and hospitality businesses blame the president's health care laws requirement that companies cover employees working at least 30 hours a week. recent survey shows one in ten plan to avoid it by hiring part timers instead of full time. 20% say they'll make no changes, two-thirds say they already offer it to those working 30 hours. it may have impact on some segments of the economy, but says it is too early to know. >> as the economy recovers, people will be hiring as they are now in very small increments, and increasing hours

worked in very small increments. they'll edge up to this decision. i suspect many of them will pause when they hit the obama care regulation. >> economists say the reason for the latest spike in part-time work is likely due to the sluggish job market, recent college grads entering the work force and furloughed government workers. the administration disputes claims the health care law will reduce the full-time work force. officials say obama care offers subsidies to businesses and workers to cut health care costs. bret? >> rich, thank you. existing home sales slipped 1.2%, still are up 15.2% from june last year. the dow added two today. s&p 500 ended up three. nasdaq up 13. oil prices below $107 a barrel. a gallon of regular sets you back on average $3.67. up 6 cents from a week ago.

meanwhile, western states are poised to unleash a huge amount of new oil. there's a big impediment to the flood gate. alicia acuna explains. >> reporter: north dakota and texas get a lot of headlines when it comes to america's domestic oil boom. other western states increased production dramatically in recent years. >> in the old en days, i wasn't around. exploring for natural gas was a bigger challenge than now. >> reporter: production in colorado, wyoming, oklahoma, increased, combined those states outproduce the oil fields in the dakotas. however, industry experts say it is no thanks to the current administration. >> energy production overall in the country has gone up significantly, it is because of private land production. >> reporter: the bureau of land management disagrees. in a statement to fox news, it noted domestic production from

over 99,000 federal onshore oil and gas wells accounts for almost 13% of the nation's natural gas production and 5% of its oil. >> so the reality is that acres of land that have been leased for energy production far outstrip land that's been preserved or conserved during the obama administration. >> conservationists say oil and gas production on public lands should be balanced with other uses. >> their economic drivers for tourism, the outdoor recreation industry, agricultural uses, clean water, you name it. >> reporter: while the time it takes a company to obtain a drilling permit on federal land has gone down from 300 days it took a year ago, critics say the process is still too long. >> for instance, a permit in texas or oklahoma or north dakota, you can get 15, 45 days. on federal land, 230 days. >> reporter: in sharp contrast to other parts of the country, up to 70% of the land in western

states is owned by the federal government. bret? >> alicia, thank you. lawmakers are not exactly giving president obama's new epa administrator time to settle into the role she was confirmed into late last week. chief congressional correspondent mike emanuel shows the battle over the science of clean air. >> reporter: newly confirmed epa administrator a gina mccarthy is threatened with subpoenas if they don't show clean act provisions. >> the epa refuses to give data they promised us. our feeling is if they don't give it to us now by end of july, we are going to issue the first subpoena in many years by the science committee to get that data. >> reporter: the data will justify major costly air regulations, the epa's proposed limits on ozone. mccarthy is new to be administrator, lawmakers note she testified more than 20 months ago and made this commitment.

>> weren't these numbers the same numbers floated around a week ago when the administration suspended its ozone standards? >> clearly not, no. >> they weren't? >> no, they were not. >> what were those figures? >> i actually don't have them at the top of my head, but i certainly can provide them. >> reporter: in a letter sent to mccarthy, smith an environment subcommittee chris stewart wrote the agency failure to comply with repeated congressional requests shows blatant disregard for policy and president obama's promise of transparency. with no data provided to the science committee so far, smith says. >> the only conclusion i reach why the epa refused to give the data used for regulations when they promised to do so repeatedly is that they've got something to hide or their data is embarrassing. >> reporter: an epa spokesperson tells fox the agency provided lawmakers with data and insists its actions will protect americans from pal u tanlts. committee aids h aides say it is

not the data lawmakers requested which they want the american people to evaluate for themselves. >> mike emanuel on the hill. thank you. for the royal baby watchers, the day has finally arrived. prince william's wife kate middleton has given birth to the future king. >> in the year 2013 a future king, the first born to the duke and duchess of cambridge. >> he has been waiting for that. she is said to be doing well, kate, will stay overnight in the hospital. the royal baby, third in line to the british throne weighs 8 pounds, 6 ounces. we are told the name of the baby will be announced, quote, in due course. up next, a potential threat

to privacy in obama care. first, a live look at wtbt, our fox affiliate in tampa. the big story there tonight, the tampa treasure hunters that recovered 61 tons of silver from a 1941 british shipwreck, worth an estimated $36 million. that's tonight's live look outside the beltway for "special report." we will be right back. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally.

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...and a great deal. .authorized thanks to dad. benz dealer. nope eeeeh... oh, guys let's leave the deals to hotels.com. ooh that one! nice. got it! oh my gosh this is so cool... awesome! perfect! yep, and no angry bears. the perfect place is on sale now. up to 40% off. only at hotels.com the obama care has unintended consequences. privacy advocates have somethin. doug mcelway has details. >> reporter: for those suspicious of the government's vast capabilities to peer into private lives, one part of the affordable care act poses a new

threat, federal data services hub, a web portal for state health exchanges, including troefs of personal data, medical, tax records, criminal, background rks immigration status, will be shared among several federal agencies. critics fear political leaks and identity theft. >> the government will be hiring thousands to come in and evaluate this material. they will be in many cases untrained, unscreened. >> reporter: last week, they tried to assure a house panel that privacy protections are being erected before the october 1st roll out. >> information sharing will be done against the backdrop of very strong confidentiality protections that have been long part of the tax laws. >> reporter: that rings hollow. even with recent leaks of information and by revelations

that key democratic party constituents will help enroll them. >> they have given grants to teacher unions and organizing america to help sign people up to the exchanges. >> reporter: the administration urges them to trust the system. >> they can trust the information they're providing is protected through the highest privacy standard and technology underlying the application process has been tested and is secure. >> reporter: even so, republican congresswoman diane black from tennessee introduced legislation to block implementation until certifications are made that taxpayer information is not and will not be used for targeting any individual or group. some argue the only way to protect privacy in the digital age is not to release it at all, but with americans mandated to participate in the affordable care act, that choice is no longer available. bret? >> thank you. iraqi security forces locked down areas around abu ghraib prison to look for escaped

inmates and militants. hundreds, including senior members of al qaeda facing death sentences escaped after they launched a military style assault to free them in iraq this afternoon. officials say dozens were killed, including at least 25 members of the iraqi security forces. 71 detainees at guantanamo bay get parole style hearings. inmates eligible are those who have not been found guilty or are awaiting trial or awaiting transfer. the pentagon hasn't said when the panels will meet, whether the media can watch. president obama ordered these hearings two years ago. tonight, a senior u.s. military commander at the time of the benghazi, libya attacks has come forward with firsthand knowledge to say it was clear the attack on the consulate had nothing to do with an anti-islam youtube video from the beginning. chief intelligence correspondent catherine herridge has the story. >> reporter: the former head of u.s. forces in africa, general

carter hamm, told aspen security forum he was in washington, d.c. for a routine meeting with defense secretary panetta and chairman of the joint chiefs, martin dempsey, when an alert came from commanders in germany that a violent assault was under way in benghazi and ambassador chris stevens was missing. >> this was not a demonstration, this was a violent attack. >> did you think it was a terrorist attack? >> i don't know that that was my first reaction, but pretty quickly as we started to gain understanding within the hours after the initiation of the attack, yes. >> reporter: while he did not address reports he was pushed into retirement after benghazi, he said quick response was not possible and defended the decision not to scramble fighter jets. >> in my military judgment it was not necessity, and there was not clear purpose in doing so.

>> reporter: ham's comments are in line with his former boss that testified before congress. >> i later found out you had rpgs, mortars, there was attack on a second facility it was a terrorist attack. >> reporter: as to why hillary clinton blamed a video on september 12th, when officials knew the day before it was terrorism, not a demonstration, the state department tried to portray the disconnect as old news. >> again, i am not going to litigate, it has already been evaluated. >> reporter: in a letter to hagel and kerry, frank wolf is pressing the administration to explain why it has not used the military to detain five benghazi suspects. carter hamm says libya is to blame for the lack of progress. >> we will continue to follow the development. a strong earth shook northwest china killing at least 75 people, injuring more than 400 others. the u.s. geological survey measured the initial magnitude

at 5.9. land slides damaged thousands of homes. still ahead, the pope's message to the young and jobless as he starts his first trip outside italy to brazil. a tight race for governor in virginia. and they don't seem to like each other. the same again! it's red lobster's rlunch. seven selections made for your lunch break, like simp tacos and grilled shrimp salad with soup. all jt $7.99. come inoday for rlunch and sea food differently. [poof!]

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a newly filed lawsuit accuses san diego democratic mayor bob filner of sexually harassing an employee. his accuser, former communications director irene mccormick came forward with charges that he asked her to work without wearing underwear, demanded kisses, and repeatedly dragged her around in a head lock while whispering sexual

advances. under growing pressure acknowledged inappropriate behavior for female staff members but says he won't step down. george zimmerman emerged from hiding to help rescue a family of four, trapped in an overturned suv. it was his first time being seen in public since he was acquitted of murdering trayvon martin. the crash happened in sanford, florida last wednesday. the sheriff's office says after helping the four people out, zimmerman spoke with a deputy at the scene, then left. there were no reports of injuries. back here at home, virginia's gubernatorial candidates squared off in the first debate over the weekend, it is a closely watched race because it is a purple state with national implications. chief washington correspondent james rosen has the story. >> reporter: facing off at the homestead resort, virginia gubernatorial candidates, ken cuccinelli and terry mccall i

have, former claire of democratic national committee spent most of the 90 minutes casting each other as extremists and untrustworthy. gifts the ag failed to disclose, and painted cuccinelli as inwardly hostile to gays and women. >> last 40 years have seen a sociological agenda made virginia a laughing stock. we want everybody to come to virginia. he says one thing and does something else. ken, i mean, you are the true trojan horse of virginia politics. >> reporter: cuccinelli says mccall i have failed a car business in mississippi rather than virginia and challenged the long time democratic money man to lay bare his own finances. >> i put eight years of my tax returns out. terry mccall i have in his book says if you got nothing to hide, release the documents. what have you got to hide? release them. >> politifact gave him a pants on fire for misrepresenting findings of an independent

prosecutor who examined cuccinelli's financial disclosures. he said cuccinelli should have been prosecuted, when the report exxon rating him made no such suggestion. >> i will let fact checkers take care of that. >> reporter: both candidates will spend millions on negative ads through november. >> if you trace back off year races, you look at the last 11, you find that six of them did predict mid term election, five didn't. in my book, that's close to 50/50. >> reporter: four years ago, voter participation in the commonwealth gubernatorial race was down 7% from the preceding presidential race, those on the sidelines tending to be younger minority voters. >> james, thank you. former presidential candidate and long time senator bob dole turned 90 years old today. on fox news sunday earlier this year, dole spoke out about aging. >> you turn 90 in july.

and my father used to say growing old isn't for sissies, is it? >> no, it is not for sissies, but there are a lot of benefits. you think about your best and what you've been able to accomplish, if anything. >> happy birthday, senator dole. still ahead, a gator not allowed in the bar. and marshalls that handle witness protection lose track of a bunch of encrypted radios. the grapevine is next. on a walk, walk, walk. love to walk. yeah, we found that wonderful thing. and you smiled. and threw it. and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-arod thing... had made you play. and that... had made you smile. [ announcer ] beneful. play. it's good for you.

now fresh pickings from the political grapevine. wasting taxpayer money, disregarding nepotism rules would put any employee in hot water. the water really starts to boil if allegations are leveled at the watchdog for department of homeland security. new york post reports charles edward, the top inspector general at dhs is currently under investigation for abuses like multiple taxpayer funded trips and employing his wife, who was then allowed to telework from india for five months. senators ron jon son, claire mccaskill say they're on the case, after hearing from whistleblowers that government employees were also used to help with the ig's homework in pursuit of his ph.d.. edwards says allegations are without merit and he denied any wrongdoing. the u.s. marshall service misplaced some radios. the problem, missing encrypted

devices are worth millions of dollars, would present a significant security risk if obtained by criminals. the marshall service is charged with protecting federal courthouses and operating the witness protection program. the service has acknowledged the problem, blaming poor record keeping and claiming when many of the radios were declared obsolete and taken out of the field they were not properly documented. a spokesman emphasizes they are not aware of any public safety issues as a result of the lost radios at this time. and finally, apparently the freedom to bark is not protected under the first amendment. antonio morrison, a university of florida football player, a gator, was arrested over the weekend for barking at a police dog. his defense? the dog barked first. in florida, you see, it is illegal to tease or interfere with a police dog. the player was also charged with resisting arrest, following the barking incident. brazilian police found a

garage near a catholic e in a sanctuary where pope francis is scheduled to visit later this week. police say it was safely detonated and it is unclear if the device was related to his visit. celebrating world youth day there, pope francis' focus reaching a generation of young people who in big numbers are growing up jobless. here is religion correspondent lauren green. >> reporter: pope francis arrived in rio dejanuary ear oh. he expressed worry about how many young don't have jobs, that there is a crisis among the young, and culture of inclusion was needed to help the young jobless getting caught up in a disposable culture. pope benedict resigned in february. francis puts his own stamp on the trip altering the trip to go

to a slum. his journey to the largest catholic country is the first visit by the first latin american pope. >> comes at a time when latin america is facing a host of challenges, and his message to latin america is that i'm one of you. >> reporter: security is high. one brazilian official calling it the biggest police operation in the city's history. in the next six days, thousands of army, air force, navy soldiers join ranks of police and security forces, costing upwards of $50 million. adding to concerns, pope francis will use an open air jeep with no barrier between him and the pilgrims. >> we would have preferred he come with the pope mobile, that's by his own personal choice, not the vatican but his. >> reporter: the papal comes in the wake of protests a month ago, angry over corruption,

transportation hikes and failing services. hosting the world cup in 2014 and olympics in 2016. pope francis' challenge is to inspire youth at a time when they face more competition from protestant evangelicalism. it is the first attempt if he can be the pope of the poor for a new generation. bret? >> lauren, thank you. downloadable visitor logs show the irs chief council william wilkins was at the white house april 23rd, 2012, before 4:00 in the afternoon, and left according to logs at 11:00 p.m. that evening. the significance of that date, two days before the be on the lookout targeting tea party groups tied to wilkins. we'll stay on this and have more on the irs investigation tomorrow on "special report." we take a close look at the state of the u.s. economy, five years after the crash with the fox all stars in a moment. stay tuned. this day calls you.

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this new normal, the slow economic growth, no increase in jobs that are available, wages are being basically frozen, we're squeezing the middle class. i would argue the president's policies are getting in the way of the economy growing. >> we created over 7.2 million private sector jobs, 40th straight month of economic growth. but we have more work to do and what the president hopes to do is talk about how we can do that together. >> the president is getting ready for a new series of speeches, starting wednesday, about the u.s. economy and let's bring in the panel. jason o'reilly from "the wall street journal." welcome to the panel the first time, fox news contributor stanley cohen, and syndicated

columnist charles krauthammer. the white house was asked what's going to be new in the speeches as the president pivots. your thoughts of what they're trying to do, trying to accomplish? >> they're now saying they're offering some new proposals. i am not sure the president has something new. first campaign, second campaign, said we grow the economy from middle class out. that's what the american people want, the government focused on jobs and the economy. he lays down the gauntlet for republicans and saying could you do something other than sabotage the economy, focus on manufactured scandals that nobody cares about, actually have a solution, be part of the solution instead of part of the problem. i think he is reraising issues that the american people want to see members of congress take on. >> i assume "the wall street journal editorial page would have a different take? >> slightly.

"the new york times" described it, bret, as campaign style tour the president is about to embark on. the campaign is over. won't someone on staff tell him? i think this president has lost all credibility on economic matters frankly. we are in the third year of an economic recovery. 7.6% unemployment, lowest labor force participation rate in 30 years. if we are lucky, economic growth will be 1.5, 1.7% this year. this is the third year of recovery. >> on the flip side, new record highs on wall street, 39% of the economists surveyed by national association for business say firms will hire more in the next six months than in the past two years. you do have positive indications as well as negative. >> but this president knows what needs to be done. we don't need more speeches, we need him to enact things, for instance, that his jobs council

recommended but that he subsequently rejected. the speaker mentioned a new normal. i think he is onto something there. i think this president's model is not clinton style growth in the '90s or reagan in the '80s, it is the european social democrat model. he wants us to accept new normal of higher government spending, higher unemployment, lower growth in response for a bigger safety net. >> sally? >> revised all projections for the deficit down for 2013. the president has shown himself to be, whether i agree with it or not, an aggressive spending cutter, but look, he put a jobs plan on the table, put plans on the table. what have republicans done? john boehner yesterday said republicans in the house should be judged not on what they do but what they repeal. literally, they're trying to relitigate everything, do something positive. >> this isn't new.

obama is the deficit reducer, this is the man that has run up the largest deficits in american history by a factor you can't even calculate. he had nowhere to go but some reduction. he averaged over a trillion dollars, that obviously can't go on. he increased taxes. what he has produced is a stagnant economy on the european model. chronic unemployment as you see in europe. entitlement state where you get a sluggish recovery, worst since the second world war. under reagan, 6, 7, 8% growth within a year. here we are three years in, four years in, growing 1 to 1.5%. the reason the stock market is up doesn't have anything to do with obama, has to do with the fact the fed is pumping in a trillion dollars a year, it prints. money has to go somewhere. that's the explanation for all that.

every time bernanke gives a hint in the back room of a conference that he might actually let up on the accelerator, you get a 100 point drop in the market. it is all about monetary stimulus. >> in the background, you have bankruptcy of detroit, the largest city to declare bankruptcy. you had the mayor speak out this weekend and the white house answering the question or not answering whether there would be a bailout or not. >> we're not the only city that's going to struggle through what we're going through. there are over 100 major urban cities having the same problems that we're having. we may be one of the first. we are the largest. but we absolutely will not be the last. so we've got to set a benchmark in terms of how to fix our cities and come back from this tragedy. >> we will of course as we do with every city work with them on ways to assist them in their effort as detroit tries to get back on its feet and continues to make progress, but the issue

of insolvency is something that detroit and creditors need to resolve. >> another way to say it, jason, there's not an appetite on either side of the aisle for a bailout. >> yes. i would be surprised if the white house stepped in. i am sure mayor binge, governor snyder saw that avenue before they went ahead with the bankruptcy. it will be painful but it needs to happen. these cities, detroit is in sort of a borrow tax, spend cycle. that's something a bailout won't get them out of, but bankruptcy will. allows debtors to shed liabilities difficult to shed in the normal process of doing things, especially when you have powerful unions and pensioners in the way. i think this is a painful but necessary process that detroit has to go through, and cautionary tale for many other cities. mayor bing is right, they're not the only one. >> the cautionary tale, a lot of

them will use detroit to cram more austerity down the throats of the united states. every study that supposedly said cutting was a good idea has been disprove en. in england, can't even save the bath water with the baby. now they're going to use detroit as an excuse to do more of this. republicans unfortunately when the economy is good, they want to cut spending and taxes, when the economy is bad they want to cut spending and taxes, that's just their answer to everything. here is where we need spending to help. that's just the reality. >> but detroit is not really an example of the failure of gop economic policy. it is run by the democrats for 60 years, and you can cite all the studies about how bad austerity, look at detroit and you can see how bad the after effects of it is. i think the talk of a bailout,

understand detroit is a precedent. the minute you step in to bailout detroit, you'll have every city line up with a tin cup. even this administration, even this administration is going to hold back from doing it. >> i'm not saying we need to bail out detroit, not saying that's the right answer. we have to know problems in detroit are deeper than any party. i put the blame on obama for embracing austerity politics. in the '50s, 56% of jobs were in the city. by the '90s, 18%. we have had six decades of did i vestment. >> detroit as a city spent 100 million more than they were bringing in for nine years. that's not necessarily austerity. next up, national implications of a tight virginia governor's race that could have impact around the country. crash]

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>> ran for attorney general talked about job creation and for the last four years we have seen a socioideological agenda made on late comedy show virginia laughing stock. you are the true virginia horse of politics. you come in pretending to be one thing and you really are something else. >> i have put eight years of my tax returns out. terry mccullough in his book he says hey, if you have got nothing to hide, release the documents. so what have you got it hide? release your tax returns. i think the people of virginia right now more than ever need confidence in the transparency and commitment to transparency of the next governor. the only candidate in this race who has chased business out of virginia,

it's you, it's terry. not me. >> bret: virginia gubernatorial candidates going at it this weekend and it's an interesting race because it reflckets on the country as a whole. it's the biggest race really for this cycle in 2013. take a look at the latest polls. if you look at the rcp average there is a lot of numbers on the screen there but for the most part you have mcauliff lead be. the roanoke was different there, 7/14. if you look at the latest from quinnipiac, that race has mcauliff up four. we're back with the panel. charles, what about this race and its implications? >> you are right. gers is a harr harr pen governor mcdonald. off year election where christie won in new jersey. mcauliff won in virginia and then shortly afterwards

scott brown won the senate race in massachusetts. that was a harp jerry in 2010. what obama ha had been doing in 2008. important in virginia, a purple state it can go either way. as you saw in that debate it isn't exactly lincoln-douglass. i didn't hear the lofty principles at stake in this election. it was all, about you know, he is a crook and, he is a trojan horse. i'm not sure how you pick between the two. >> bret: sally? >> you know, look, i think, i'm no terry mcauliff fan, i will just say that to begin with. so i think i'm sure he is a nice guy and all. you know, he will he g-8 matily -- will legitimately could be considered a carpet bagger. the fact he is doing well says something about his opponent. while this is disconcerting for republican is for 2014 and 2016. if they keep running these very staunch social conservatives who are

leading the war on women going after gay rights, really doing everything that i would have thought the republicans learned in 2012 not to do, things don't look good in 2014 or 2016 for them. >> bret: jason, a lot of people said that at the beginning of bob mcdonald's race. social conservative have a real problem in purple virginia. he ran on the economy and he won big numbers. he is now obviously having troubles of his own and they are reflecting on cuccinelli as well. >> exactly. i think that's the big elephant in the room. you have a governor bob mcdonald under this big republican scandal. what also hurts cuccinelli not just guilt by association party wise. it also turns out that he has taken money from this donor in trouble for giving money, has given money to the governor. there is a connection there. it's weighing down on the race. charles mentioned that virginia has become a purple state. it's become -- obama won it twice now. the real question is virginia still going to he

elect statewide social conservatives. particularly those who aren't focusing on the economy. remember, we had a senators race last year between tim kaine and allen, and george allen and the republicans lost that race pretty handily. there is a big question going forward whether the state is still willing to elect statewide social conservatives. >> bret: is it fair to say though if this race is dealing with these two personalities and all of the baggage, if you will, that each that it really is a bigger picture. or is it just the commonwealth? >> well, i think it will be part of both because, as jason indicates, there are a lot of contaminating factors here if you want to draw a generalization about how the parties are doing. i do think the think issues are a problem. but it is a classic case, sort of a semisouthern state, you might say that virginia is now. if you run as a social conservative, can you do it? and the answer is becoming less and less so. >> okay. panel, thank you, we will talk about this more.

sally, thanks for being here. >> you are welcome. >> bret: that's it for the panel. stay tuned for -- well, it's just a great story. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner,

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it's specific treatment for diabetic nerve pain. to hear more of terry's story, visit lyrica.com. >> bret: finally tonight a family vacation to remember. bethany was snorkeling in japan when something or someone snuck up behind her in the water it was not a shark. it was her husband, a u.s. air force doctor who had been serving in afghanistan for six months. >> mommy, what would you say? >> love you. miss you. >> that's it? >> i want your body? [ laughter ] tocute hottie for a to tottie? >> i'm going to send it to him on facebook. [gasp] >> are you freaking kidding me? >> mrs. bronson, your husband is here report for duet. >> dada. >> daddy? >> daddy! >> dada.

>> you get the first hug. >> daddy. >> bret: thank you for inviting us into your home tonight. that's it for this "special report," fair, balanced and unafraid. this is the fox report. tonight, the monarchy has a future. that's how the people of great britain are describing it. one of the most talked about pregnancies in the world ever. and now the waiting is over. [cheers and applause] >> the royal baby is finally here. >> welcome a future king. >> i'm more excited than ever. >> it's a once in a lifetime event. >> it was worth the wait. >> for crowds camping out at the hospital. >> it's for the baby. >> i will see what i can do. >> now we are about to get our first glimpse of the future king.