and i wasn't too much of a crybaby. just a few-- you cried a little bit, but it's fine. yeah, a little bit. that's good. - okay, i'm sure. - thank you. - thank you, thank you. - thank you so much. >> this is a fox news alert. i am in >> fox news alert, on a christmas eve packed with breaking news from an ongoing partial government shutdown to a shock day for the financial markets amid escalating battle between donald trump and the chairman of the federal reserve. the dow jones industrial average sinking 653 points, the s&p dropping 65.5 points, the nasdaq lost 140 points, those are 3% declines for the dow and s&p, 2% for the nasdaq, marking the biggest percentage drop in trading on christmas eve ever for all 3 indices, markets will be closed tomorrow.

we have fox team coverage tonight, they are tackling the latest on the partial government shutdown, infighting and washington to what it means for ordinary americans so far. live from the pentagon, a new exit data posed by the president for outgoing defense secretary jim mattis but let's start with richardson in the washington beer on the message from the markets to donald trump and his new nemesis, the fed chairman. >> us stock market followed up their worst weeks and the 2008 financial crisis with the worst ever christmas eve, top financial regulators trying to reassure investors as they continue selling to close out 2018. it is a group of top washington regulators focused on financial markets, it is called the fund protection team and held a rare

call today, steve mnuchin chairs the group. he and other administration officials maintain us economic growth is still strong. >> fundamentals of the are your great, the stock market is down, it goes up and down. unemployment at lows, business confidence is high, the fundamentals are still good. >> rising interest rates slowing global growth, trade fight and partial government shutdown souring investors enough to shed 4000 points from the dow jones industrial average in 3 months. some analysts point to diminishing effects of the republican tax cut and his long-term consequences of the national debt, donald trump used the market since its election as proof the economic approach works, with markets following the president tweeted the only

problem our economy has is the fed. they don't have a feel for the market or understand trade wars or strong dollars or democrat shutdowns or reporters, the fed is like a powerful golfer who can't score because he has no touch, he can't putt, the president selected jerome powell to lead the federal reserve, powell has continued unwinding the fed's historic intervention and exceptionally low interest-rate policy that confronted the 2008 financial crisis, the new york times says powell could turn him into herbert hoover, the us president at the beginning of the great depression, bloomberg says the president considered firing powers they discuss more fed increases next year. democratic congressional leaders say, quote, is christmas eve and donald trump is plunging the country into chaos. the stock market is tanking and the president is waging a personal war on the federal reserve. analysts say the drop could break through the administration's trade negotiations with china. >> the president is going to be under a lot of pressure, the market continues to make a deal. so there will be a deal. whether it has real substance is something else.

>> us and chinese negotiators will hold trade discussions next month as the two countries argue over several issues, last week the justice department indicted two chinese hackers for what officials describe as a massive years long campaign to steal company secrets across the world. >> congressional democrats and republicans are no closer to reaching a resolution over funding for the border wall. the impact leading to a quarter of the federal government shutting down over the weekend. now top trump administration officials are warning it could stretch into january. allison barber has the perspective from the white house on this ongoing debate. >> donald trump met with his secretary of homeland security to discuss border security but there is no indication the shutdown is going to end anytime soon. the white house backing away from the demand that led to the

government shutdown. >> we moved off of the 5. >> and closer to what they said they were opening. >> we are at $5 billion, the counteroffer we gave was between those members. the problem is as recently as two weeks ago they offered $1.6 billion for the same thing so they are moving in the wrong direction. the question is whether this deal can be cut before the new congress comes in. >> the latest offer is $2.1 billion for border security. $400 million for other immigration priorities. the white house is not commenting on details of the counteroffer. a senior administration official said saturday, negotiations will progress and democrats acknowledge physical barriers need to be part of the package.

>> the president's vision, just doesn't get it. things that are effective we support, modern negotiations, let's have them. >> nancy pelosi, senate democrat, minor leader chuck schumer, released a statement today that said in part, quote, different people for the same white house are saying different things about what the president would accept or not accept to end the trump shutdown making it impossible to know where they stand at any given moment. the president wanted the shutdown but he seems not to know how to get himself out of it, donald trump plan to send christmas at his home in mara law go but instead stayed in washington, the first lady left for florida friday, returning to spend the holidays at the white house alongside her husband. the president spending some of his time on twitter. i'm all alone, poor me, in the white house, waiting for democrats to come back and make a deal on desperately needed border security. at one point he went after bob corker tweeting but corker wanted to run for office again but, quote, paul numbers tanked what i wouldn't endorse them. corker responding with a tweet of his own just like mexico is

paying for the wall. alert the daycare staff. this weekend the president held a lunch meeting on border issues with members of his administration and lawmakers, all of the republicans, four from the house freedom caucus. nancy closely and chuck schumer released a statement that said as long as the president is guided by the house freedom caucus, it is unlikely they will come up with a solution that will pass both the house and the senate. >> the national christmas tree went dark due to the partial government shutdown, not so for the north american aerospace defense command, a.k.a. norad. no shutdown can keep norad from tracking santa's way. the quick away on capitol hill right now with details on what has been affected so far, what hasn't and what is likely to come in the days ahead.

>> the house will be in order. >> as soon as alex gambled and he gambled out saying on the senate side today. >> the senate stand agenda. >> these pro forma sessions a small sign is little urgency and not enough cooperation to resolve the partial government shutdown. >> there is no path toward is getting $5 billion in american taxpayer money to meet his campaign promise of a big beautiful wall with mexico. >> we have to have a physical barrier. >> as shutdowns go this would have been benign so far, starting on a saturday when most federal workers were off, continuing today and to our, but federal holidays through traditionally slow week. the 8000 employees affected, 25% of the federal workforce representing 9 government departments will be paid retroactively. many services and areas like arizona's grand canyon remain open. government doocy signed an executive order vowing the park will not close on our watch. even norad's santa track keeping

kids apprised of the jolly old elf's global position, the senate is set to meet thursday for what mitch mcconnell hopes will be a fruitful meeting. >> we don't need your long, 60 votes in the senate, majority in the house and donald trump's signature. that is what is needed. >> there is growing unease the shutdown may extend into the new year and a new congress. >> sometimes you just have to hunker down like a jackass and a hailstorm just to make it, that is where we are. >> republicans are convinced it is not schumer but nancy pelosi who is dictating the democrat strategy. in her quest to win house speaker. she needs votes on incoming (freshman. if she cooperates with the president before the leadership elections she risks alienating those votes. >> this is a pelosi problem, no

question her speakership seems to be in balance against border security, some would say it gets easier after that problem is resolved on january 3rd. >> alike federal workers whose pay is being withheld during the shutdown members of congress are exempt from that. it is such a political hot potato that some members ask their own pay be voluntarily withheld while another congressman introduced legislation to close the house sauna while the shutdown is underway. >> a bit of an optics problem. the president responding via tweet storm, the criticism over the resignation of defense secretary jim mattis and the diplomat running point on the coalition, lucas thomas and brings us up to speed on the latest from the pentagon. >> days after donald trump raised his outgoing defense secretary the president turned on him in a tweet. we are subsidizing the militaries of many rich countries all over the world and at the same time these countries

gain total advantage of the us and taxpayers on trade. general mattis did not see this as a problem. i do and it is being fixed. officials say the change of heart came after the president read mattis's resignation letter and saw the fallout on the press. fox news sunday the president's chief of staff admitted tensions between mattis and the president have been simmering for months. >> i think the relationship between these two have been praying, the president no longer relied on mattis to deliver the president's vision. >> mattis will even for very to make a master to nato headquarters in brussels and

testify before congress where he will face tense questions about his policy differences with donald trump but the president had other ideas. early sunday morning mike pompeo called mattis to say the president wanted him gone two months early, donald trump announced on twitter mattis's deputy patrick shanahan, a former boeing executive and the president's point man for the proposed space force would take over as acting defense secretary january 1st. the president also said he had spoken to his turkish counterpart for the second time in 10 days about apollo of american troops from syria, donald trump pumped the brakes on any immediate withdrawal saying the paul out would be slow and highly coordinated with turkish forces. >> now this opportunity to bring our troops home with a slow withdrawal back to the united states and really focus in on ensuring that it is about keeping our troops safe. >> official say donald trump received no assurances from president erdogan for curtis backed forces. turkey calls this terrorism. in a tweet monday the president says saudi arabia has agreed to spend the necessary money needed

to rebuild syria instead of the united states. in addition to mattis the president's top envoy to the anti-ice is coalition announced he was resigning due to the president's decision to pull all diplomats and soldiers out of syria. the president said i do not know brett mcgurk calling him an obama old over. us troops are leaving syria, 5000 were in neighboring iraq and could be used to launch missions into syria against isis. >> thanks a lot. north korea has been ordered by a us district court judge to pay the family of otto warmbier $500 million. he was detained for 17 months after trying to return to the us following a tour of north korea. he came back with severe brain damage and in a nonresponsive state. his parents say they filed the suit against kim jong un's regime for closure and justice for there's an. north korean officials denied he was tortured while in custody.

donald trump tweeting a picture of his meeting with his north korean advisors was the caption reads, quote, christmas eve briefing with my north korea team, working on north korea, progress being made, looking forward to my next summit with chairman kim and, quote, the tweet can be seen as a possible overture to pyongyang which has been reportedly rebuffing lower-level diplomatic efforts. outside washington, americans are doing their usual, getting ready for christmas. a few procrastinators, coming down to the wire for last-minute shopping. jeff flock joins us for one of the busiest shopping district in chicago. >> perhaps you can see a 50 foot christmas tree emblematic of the positive christmas they expect on the magnificent mile. not exactly a crush of shoppers christmas eve, this last shopping day before christmas but a healthy number. look at the numbers from the

national retail federation that found 44% of holiday shoppers had it done before the past weekend and another quarter or so did their final shopping on supersaturday and sunday, 7% still out trying to get the last-minute gift today in places like this, you can't get anything and more online and delivered in time. this is the line for santa claus. a big down day in the market today, but that was despite the fact that retail stock today did very well. abercrombie and fitch up, american eagle also up and so a positive day for retailers indicating a positive christmas.

there you are seeing santa claus, one of the most popular santa clauses in chicago. they say he's the real one. let's see if christmas is a real santa claus christmas for the retailers. >> up next indonesia reels from a stealth attack by a deadly tsunami. here is what is going on around the country. in st. louis, mike parsons declaring his intent to repeal and replace a citizen improved constitutional amendment, a clean initiative approved by voters in november revising the way the legislative districts are drawn. parsons says the measure is unconstitutional. fox 35 in orlando, space x wanting a fountain 9 rocket carrying what is billed as the air force's most powerful gps satellite ever built, heading toward the international space station and space x's first pentagon sanctioned national security mission and this is a live look at the city of brotherly love from fox 29 in philadelphia.

fox affiliate running a story about a new jersey man with his ladylove to atlantic city, he wanted $1 million playing poker on a $5 bet. that is a live look outside the beltway. we will be right back. in cash back. which i used to offer health insurance to my employees. what's in your wallet? and then, more jobs robegan to appear.. what started with one job spread all around. because each job in energy creates many more in this town.

>> ♪ >> ♪

>> north carolina >> with caroline at length congressional district race is still unresolved a month after the midterm elections. newly released affidavits allege absentee ballot collected from north carolina voters by mcrae dallas, the chief strategist for republican mark harris's campaign. one voter claims blackmail in absentee ballots directly to dallas. we are learning more about the deadly tsunami that water sure in indonesia. no sirens, no text messages, no major ground convulsions to warn people enjoying themselves over the holiday weekend. indonesia today mourns the dead and missing from saturday's tsunami, three way to the islands of java and sumatra, the first, witnesses say, 65 feet

high destroying or damaging 700 shops, hotels and homes. >> i don't know what to say. i'm really afraid. i've not gone over the last few days. >> an eruption from this volcano triggered a huge undersea landslide, millions of tons of followers creating a wave that crashed to nearby beaches. >> the southern water had gone to the mainland, the hotel flooded by water. 200 people were dragged by the waves. >> reporter: indonesia is a chain of islands 3000 miles wide. it is part of the so-called ring of fire of earthquakes around the pacific rim. this is indonesia's third major disaster this year caused by quakes, tsunami's and volcanoes. >> it took 10 minutes for the tsunami to hit the coast of the us but even so to get a warning out. >> most tsunamis are triggered

by earthquakes. since this one was not the irruption never showed up on seismographs and unlike the us which maintains a network of. the measure wave heights, indonesia does not have such a warning system that works. >> in the new budget year of 2019 january i will order broken equipment. the old ones will no longer be used. >> rescue teams continued searching for victims but time is running out. >> the number of casualties is growing and we are unable to use facial recognition software. >> reporter: 370 death, 120 missing, 1400 injured. experts fear more to come as this volcano continues spewing lava. activity that could signal another tsunami earthquake. >> a stunning natural disaster. thank you. the body of jakelin call who died after making the journey

across the southern border is back in her native guatemala, she had not consumed food or water for several days before being detained by border patrol agents and she died in an el paso hospital. the department of homeland security's inspector general announced it would investigate the death. the united states has long been the top funder of the united nations food program since the 1960s, increment we crept down but with violence on the upswing, there are new reasons to worry tonight. here is amy kellogg with the story from london. >> these things should not be repeating themselves in 2019. the world food program says at present it is dealing with an unprecedented sixth level crisis after a long period when hunger had been on the decline. >> number one driving force for hunger today is man-made conflict.

historically it was primarily the world food program was dealing with disasters like hurricanes, earthquakes and natural disasters but today, 80% of expenditures are in war zones. >> reporter: the world food program was founded in the 60s in the us continues to be the biggest funder. human is its most urgent case, 15 million at serious risk of not having enough to eat. 85,000 under the age of 5 may have died from mel nutrition. intense fighting keeps food and medical supplies out. >> reporter: war has brought them out, dire consequences. i heard people say it is on the brink of catastrophe. know it's not. it is a catastrophe. i saw little children, boys and girls die before my eyes. >> and nigeria, not only terrorizing the population in the northeast but starving it.

many grow their own food dependent on food aid. hundreds of thousands fled persecution in me and mark remain in squalid camps in bangladesh. wf ps richard reagan said it was almost as if he had a population equivalent to seattle where he lived to care for and feed and said it is an honor to help people. >> we dream about a job where we have an impact. >> most dangerous are less accessible places, air drops are the last reports of food to the hungry. a vicious circle because conflicts lead to food insecurity which then can lead to recruitment of extremist fighters some of whom say they would not agree to fight if they only had a way to feed their families. mike: images from major square seeing record turnout this year for christmas. beyond our borders, iran's capital quiet after hours of

gunfire between police and attackers who stormed the government building. authorities report 25 killed, 20 wounded in a firefight, police were going floor to floor searching for any remaining gunman. former pakistani prime minister sentenced to 7 years in prison for corruption. political poly calling this a black stain on the justice system. sharif was removed from power over the allegations and he denies any wrongdoing. seismologist reporting a swarm of 130 tremors shaking italy's mount etna and lava flows from the volcano and pointing to a new fracture in the southeast crater. hikers are brought from higher elevations but no reported injuries and so far the spewing ash is not disrupted nearby towns. other stories beyond the border, we will be right back. back on tv for a limited time. and if you love the best of geico,

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>> ♪ >> christmas is the celebration of the birth of jesus. for christians a visit to the church of the n mike: christmas is the celebration of birth of jesus and for christians a visit to the church of the nativity is considered one of the most sacred pilgrimage of the lifetime. despite the recent violence consuming the region and it is one of the busiest christmas seasons on record. hours before nightfall in the

ocean city of bethlehem thousands gather to celebrate christmas eve. there was a procession of the latin patriarch from jerusalem to bethlehem. representatives of the vatican were joined by boy scouts and marching bands as they paraded into major square. for the city of bethlehem the celebration is an important tourist attraction to bolster the economy. >> palestinians are coming, the whole world is looking towards bethlehem. ♪ ♪ we want to wish you a merry christmas. >> reporter: the christmas eve paraded religious there money coming at heightened tensions between israelis and palestinians. in the past month two attacked in the west bank left an israeli baby and two israeli soldiers that.

the attack leading to protests as palestinians clashed with israeli forces. despite the violence people from around the world were not deterred from attending including a man from california. >> what you see and what you hear or two things. we hear people having a good time. deliberating, the birth of christ. we are glad we are part of it. number one on my bucket list, this is the right place, the right time, the right people, the right atmosphere and everything is beautiful. >> the christmas elevation in before him amid news that the israeli election will take place in april delaying the rollout of a trump administration peace plan between the israelis and palestinians. >> all is quiet and thankfully

so. for some catholics these holidays are marred by the ongoing sexual misconduct crisis. is chief religion correspondent lauren green with that story. >> i have yet to separate what happened to me from christmas. >> reporter: christmas is a difficult time of year. always has been since he was 10 years old when he says he was sexually abused by a trusted priest, his catholics collapse basketball coach. >> a part of you dies as a child. you lose the ability to trust people. and you lose the ability to believe in the faith that you are being taught. the experience never goes away. it is a baggage i will carry with me for the rest of my life. >> despite being the season of joy and goodwill there is a shadow over the catholic church, the clergy sex abuse crisis. there were some 300 abusive priests and at least 1000

victims going back 70 years. docket he is named as one of the victims in the report. several states and countries launched their own investigations exposing a global problem within the church. ♪ f receive her king. ♪ >> at an annual christmas luncheon timothy dolan conceded these are challenging times for all catholics. >> what do we need to do to heal and recuperate? there's a temptation to darkness. i need to remind myself of this because there's been a lot of darkness in the church. i hear it from our beloved victims and their families and our priests and people like you. >> catholics say the abuse crisis hasn't shaken their faith that made the more aware that priests are far from perfect. >> we are a fallen people. i'm angry with the bishops. i'm angry, but it won't stop me from attending mass and being devoted. >> and victims neither support. >> we need to pray for them

because they put their faith in people in authority and that is a terrible thing for people in positions of power to abuse that. >> catholic officials are responding. in february the pope meets with bishops and nuns to address the crisis. the good news is they need no longer suffer in silence and in that way this christmas has gone well. >> on the same day a massachusetts district attorney announced indecent assault charges, the former house of cards star kevin spacey is putting out a youtube video entitled letting me be frank, laced with seeming double entendres. listen to this. >> despite the poppycock, animosity, headlines, impeachment without a trial, despite everything, despite even my own death i feel surprisingly good. and my confidence grows each day as soon enough you will know the

full truth. >> the district attorney announcing charges of felony, indecent assault and battery against spacey. he is accused of assaulting the teenage son of a former news anchor at a nantucket bar in july 2016. free speech notwithstanding argentine authorities coming up with a punishment for the country's well-known radio shock jocks who was charged with disrespecting and insulting women if using terms like m - , -fe-fe -feminazis. they get 10 minutes to talk. he cannot interrupt them and can't criticize them when they finish. a special prosecutor will provide a list agenda specialists for him. stick around for the all-star panel and donald trump's take on the market mess and finance.

there are things to explain next.

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>> ♪ >> the fundamentals of the economy are still great. the stock market is down. unemployment is historic lows and investment high and business confidence fundamentals of the economy are great, the stock market is down, it goes up and down, unemployment that historic lows, capital investment start, business confidence still high, gdp is solid, the fundamentals still good. >> that is the and coming chief of staff on the economy, donald trump put it in his own words tweeting the only problem our economy has is the fed. they don't have a feel for the market, they don't understand trade wars or strong dollars or democrat shutdowns overboard as was the fed is like a powerful golfer who can score because he has no touch. he can't put. with that let's bring in our panel, eli lake, conservative writer kelly jane torrence and commentary writer for the washington examiner tom rogan.

what about the state of our economy? >> that is right in terms of the economy in terms of its data strength. investment is high, gdp growth is strong and stable. income growth in terms of not necessarily concerning inflation especially the lower skill level which is an indicator of businesses feeling they need more people, more demand, the problem is the other fundamentals, the political fundamental is not as stable and that confidence in the market has more to do with the president's more irregular actions than anything the fed is doing, the president would make a big mistake in his own political interests to take punitive action towards the fed. >> i hope make more vania selling donald trump the economy goes up and down because the president himself doesn't seem to realize that. he wanted to take credit when it was going up but let's face it,

stocks went up, they started going up before trump became president after he was elected as they were building in what they thought he would do. deregulation, tax cuts, the effect has dropped off a bit so things will change. i joke whenever the president starts getting into, what he is doing politically, that happened with nixon in the 1970s. by goals while you can. >> most economies believe there are cycles to the economy and we are due for a recession at this point. some of that is to be expected. the president is making things worse by threatening to do something no president has done which is to fire the fed chief. there is a reason we want the chairman of the federal reserve to be independent, the temptation is too great to juice the economy for short-term

benefit if you are president and ignore the long-term and medium-term consequences. in that respect, once again donald trump is playing with fire. >> from the heritage foundation, let's take a listen. >> we need to put more dollar liquidity into the economy because there is such a demand for dollars. everyone wants to invest in the united states and at the same time the fed is sucking them out of the economy and it hurt the stock market. >> that happened as well. >> there's a reason we have these independent guys making a decision. one can argue with that and i'm sure there's an argument in the federal reserve but we don't want the president crossing the street as it were and interfering in that respect and that used to be one of these noncontroversial bipartisan positions. >> are we now taking trump's

premise that one person as all the effect on the economy? you have the trade war he has been brewing, uncertainty, government shutdown, people wondering what is next, we have deregulation from tax cuts, what's the plan going forward. we haven't heard a lot from the white house on that. >> stephen moore is very close to the white house but he knows more about economics than i do. my father is one of them. one of the challenges you see is the issue of liquidity may be a short-term gain but back here at the fundamental underpinning, the possibility of inflation and creating artificial bubbles, artificial wealth in 2008 and if

the market gets that injection based on fundamentals it would be more of a consensus. we have to become, trust the fed. mike: let's play some sound from chris coons and let you react to that. >> the independence of the fed is a key linchpin of american economic security. i plead with the president to reconsider a dangerous course in economic policy. >> for balance let's play, pat toomey of pennsylvania. >> i don't think chairman powell is in any danger of being fired by the president. some of the president's comments, and >> is the fed chairman save? >> very clear donald trump would like to fire him or consider him. i wonder if people like mick mulvaney saying they are trying to not do it.

how the legislation reads it is possible he will do it and can do it but we are putting a lot of emphasis on one man and what he is doing in the american economy is strong. it is going to take a sign but eventually there will be a new chair if he were fired and things would go along and there would definitely be some volatility in the meantime but eventually things would flatten out. >> another area, we saw the president hinting he would get out of syria and afghanistan. this is how he should do it and he did it. i worry that even though people around him say he wouldn't go that far, it would be so extreme, eventually the president will do what he wants

to do, he threatens to do something and when he think he made a decision not to do what he does it so i'm worried. >> i don't think he will do it for the simple reason the president does what he wants to do and anyone else can take a hike but the economy matters to his political interests and his base interests in a way the syria decision, his advisers said it was a bad idea, the same component, political interest so everyone thanks to him if you want the markets to be stable it is the worst possible thing you can do. a big backdrop, longer-term, it is a big issue but at the same time some of the foreign-policy people saying we need to show that with china so it is another factor to consider. >> next up congress will resume talks in earnest on thursday and reach a deal soon or way later. the panel weighs in on the partial government shutdown next. you've had quite the career.

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>> ♪ >> ♪ >> i don't think things are going to move quickly for the next couple of days. >> i don't think things will move quickly for the next couple days. >> democrats need to step up to the plate. it is the safety of the american people. donald trump has talked time and

again about the importance of securing the border. >> an issue of border security, an issue of his own political insecurity when right-wingers, he backs off and dissembled in front of us, the depth of dysfunction i have never seen in washington. >> partial government shutdown before christmas, a quarter of the federal government is shut down. donald trump tweeting about the situation at the border writing 115 mile long contract for another section of the wall in texas, building and renovating many miles of wall, some complete. democrats must end shutdown and finish funding, billions of dollars in lives will be saved and we are back with our panel. eli, kelly jane and tom. here we are. >> i think primarily, senator

schumer, they see it is the potential sale point of an unstable presidency. it is hard for donald trump to bring that around, with mick mulvaney doing initiations moving towards that with some money, some of what the president wants, the ability to say that, we will get there this coming week because of $0.05 interests and for democrats the more it goes on the more politically and predictably becomes and for the president more opening to make the case look, it has been a number of days and i tried to make concessions which i no longer own this. >> tom is right and the administration made a huge mistake in saying donald trump, i would be happy to shut down the government for the border wall. someone must've told him shutdowns are usually unpopular

because he backed down on that but he was willing to sign a bill last week that did not have money for the wall and his conservative base did freak out about it and a lot of prominent conservatives were disappointing including fox news's laura ingram and that made trump say people want the wall? of course. he campaigned on it. almost every campaign stop he talked about building the wall but democrats know that he's willing to fudge on that promise. he was going to do it last week until people complained. they have the upper hand. they want almost $6 billion, and getting lower and lower. >> some folks think nancy pelosi doesn't want a deal until the speaker vote happens on the house floor. >> there's a lot going on with nancy pelosi but also a government shutdown is bad politics for the person waiting

for the shutdown and donald trump said i will on the shutdown which, on the other hand is it that unpopular? it is abundantly clear at this point donald trump cares about his core supporters primarily. they are going to be with him and they are energized when they believe he's fighting for them and having this kind of drama does not engender him, people who are already against him, the majority of the country is growing. it will in the end probably intensify his support among his supporters and his base and that is what he most cares about politically. he is all over the place on this stuff. he says he wants it, there is funding, they haven't spent the money already for this fence. when you get to the details and wonder what are they arguing about? mike: what they view as possibilities of ending the

shutdown, take a listen to this. >> when donald trump recognizes the bipartisan agreement we came to last wednesday that the senate voted unanimously on. it is the agreement that ultimately he has to accept. there is no path toward his getting $5 billion in american taxpayer money to meet his campaign promise of a big beautiful wall with mexico. >> the negotiation between chuck schumer who is giving a lot of weight to nancy pelosi's preferences and the president. between that group, they decide how to go forward. >> i think the most striking thing, the explicit reference, congressional correspondence, you know more than us. the simple fact of tensions, nancy pelosi is trying to grapple with against senator schumer who is more of a dealmaker, left of the democratic party, getting to

2019, that will go up with aspirations for the presidency and democrats, and the crucible of divergence between the wings the cut deals in the wings that don't. they get harder. >> the administration's falls, the senate voted unanimously for a deal that would have funded think through mid february, did not have the wall and democrats know they will take over the house in the beginning of january so anything passed in the house is almost meaningless. they have no political interest in making a deal, plus they can come in in january and say we will end the shutdown and pass something in the house and get something in the senate and they will look like heroes. mike: the matis resignation, he is out january 1st, your thoughts on that? >> a serious blow to the presidency.

matis put the trump presidency in peril for a lot of reasons, not just syrian policy but values. the one thing that may be a silver lining is matis resigned, the way he did. put the lie to the overblown conspiracy theories about the deep state. donald trump in charge of his government, in charge of his foreign-policy, makes decisions like this, people do not agree with it or undermine it. they leave and that is a good thing. mike: how are mythical creature made a little girl's christmas magical. ♪ ore are created in the community. because energy touches so many industries, it supports 10 million u.s. jobs.

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finally, tonight, a 5-year-old girl in new jersey gets a very >> a 5-year-old girl in new jersey gets a special christmas rush. riley recently lost her 34-year-old father to a heart attack. the new jersey police department found out she wanted her father to send her a unicorn for christmas they helped make it happen. santa and his elves gave her a few stuffed animals to make the

surprise more exciting. our best to that family and the police. thank you for inviting us into your home on this christmas eve. merry christmas to all who are celebrating. that is it for this special report, we are back live at 6:00 eastern tomorrow night, merry christmas. >> the object people choose to keep in their home. this is objective find. >> 57 chevy. >> this is my dream. >> this is the story of a small-town kid. >> you should be sorry. you cannot be that shallow. >> doctor phil grew up poor with a father who terrorized the family. >> he would get drunk, throw things