>> bret: wasn't us. thanks for inviting us into your home tonight. that's it for this "special report," fair, balanced, and unafraid. >> trace: tonight on "the fox report." president obama denies that he is ready to extend tax cuts for everybody. >> that is the wrong interpretation. >> and the president says he is clear up the confusion. republicans say not good enough. >> the president is going to have to wake up and say yeah, that's what we have to do. >> trace: now, getting set for a showdown. vanished. >> she is a good kid. a woman, her children, and a friend all disappears all disappears without a trace. tonight, mystery in ohio.

plus, some delearships might throw in a free undercoating. this one has a different deal. >> people are calling us don't believe it. >> tonight, buy a truck and they will toss in the ak-47 for free. we begin with the political debate that will determine how much money you pay in taxes next year. i'm jon scott in for shep tonight. president obama is now pushing back on a report that seemed to signal he is willing to compromise with republicans and accept a full extension of the bush era tax cuts. but he didn't really rule out the possibility either. it comes a day after the huffington post cited the president's senior advisor david axelrod as saying, quote: we have to deal with the world as we find it and the huffington post writing this. the administration is ready to accept an across-the-board continuation of steep bush-era tax cuts, including those for the wealthiest taxpayers. today while addressing supporters in south korea

suggested that's the wrong interpretation of axelrod's remarks. >> here is the right interpretation. i want to make sure that taxes don't go up for middle class families starting on january 1st. that's my number one priority. for those families and for our economy. i also believe that it would be fiscally irresponsible for us to permanently extend the high income tax cuts. >> jon: here is where things stand the president says he does not want to permanently extend tax cuts for those making more than $250,000 a year. but he did not say he oppose as temporary continuation of those cuts. wendell goler is traveling with the president who is now in japan. wendell, this has turned into an exercise in semantics, hasn't it? >> jon, the president plans to talk with democrat and republican congressional leaders when he returns to washington next week. he doesn't want to make concessions before those talks. they may extend the income level

for the tax cuts they make permanent there will certainly be negotiations over how long to extend the upper income tax cuts. the president says the country doesn't get much bang for those bucks. >> but, again, i know that the other side feels very strongly about it. i'm willing to have a tough, hard-headed discussion with the democratic and republican leaders about that issue. >> the president suggests as part of the negotiation he may ask republicans what they will cut to pay for the tax cuts, jon. >> jon: as the president tries to clear all of that up, he has been meeting with other world leaders who apparently are upset with recent u.s. financial policy. what you can tell us about that? >> the issue involves the federal reserve's decision to purchase $600 billion in u.s. securities to pump more money into the economy. that will have the of lowering the value of the dollar and brazilian president says that's no different than china

artificially low aring the value of its currency to make exports cheaper for other countries to buy. the u.s. unable to get the other countries at the summit to criticize china either for currency manipulation or the size of trade surpluses. nor would they bite on a proposal to set numeric call limits on trade surpluses. they did agree to monitor trade imbalances which the u.s. feels are slowing the global recovery. keeping the u.s. and other countries to create jobs as fast as they might. there is no mechanism for actually smoothing out the trade imbalances. with the u.s. and china accused of bending if not breaking the rules, the concern is that other countries may follow suit. jon? >> jon: wendell goler with the president. wendell, thanks. speaker of the house nancy pelosi, who is preparing to convene a lame duck session of the house next week, is also making it clear where she stands in the tax cut debate. a live report of that coming up at the bottom of the hour. some confusion tonight over

whether al qaeda may have a new guy running terrorist operations against the west. london's daily telegraph newspaper reports osama bin laden appointed this man to coordinate new attacks. the paper says is he believed responsible for both the recent terror alerts in europe and the failed airplane package bomb plot. the fbi is offering a 5-million-dollar reward for him in coordination with the bombings in kenya and tanzania in 199. no doubt is he dangerous there is a question whether is he really running the show. catherine herridge with the news live in washington. catherine, what are you hearing? >> thank you, jon. based on our reporting, investigators can't agree on whether he has taken one of al qaeda's top operational jobs because they can't agree whether is he still hiding in iran. this picture of him is from the foundation that tracks terrorists worldwide. according to investigators he left afghanistan and disappeared into iran after 9/11. until recently he was said to be under house arrest in iran along

with bin laden's sons. iran never acknowledged holding al qaeda operatives which led to speculation that house arrest was really code for shelter protection and some level of cooperation between iran and al qaeda, jon. >> jon: what else do we know about this guy? >> well, he is a significant figure. we know that he is part of al qaeda's inner circle after 9/11 as head of the military committee. it meant that he was the boss of khalid sheikh mohammed, the mast err mind of 9/11. he has understanding relationship of iran. it is believed he was released from iran in exchange for iranian diplomat. u.s. officials agree he is a real player with al qaeda. they just don't agree on what his role is right now. jon? >> jon: catherine herridge in washington. thank you. >> you're welcome. >> jon: word today of a frightening discovery at the home of a missing family. in ohio, investigators are trying to find a mother, her two kids, and a female friend. they all disappeared some time in the last couple of days. and now the mom's ex says a

co-worker saw blood in her house. "the fox report's" chief correspondent jonathan hunt now with the news. jonathan, cops are confirming this story about the blood. >> yes, jon. a short time ago the knox county sheriff confirmed that when deputies entered that house on thursday evening, they did indeed find blood. they say there is clear evidence that somebody was hurt inside that house. what they don't know is what happened next. listen. >> there is evidence of an injury has occurred inside the house. and for investigative reasons i can't go into an extensive amount of detail about the evidence that's being processed right now. >> now, the sheriff says there is no concrete evidence that tina herman, her 13-year-old daughter and her 10-year-old son and her 41-year-old friend stefanie sprang were abducted but clearly, jon, this is a very, very active investigation. >> jon: investigators are talking to the boyfriend, right? >> yeah, the boyfriend is called

greg borders. he lived with tina herman, although he says the couple actually split up a few weeks ago. now he says he last heard from her at 4:40 in the morning on wednesday when he was on his way to work. he says she texted him to say she had fed the dog. he then completed his work shift that day. he says he stayed with a friend that night played golf then on thursday and did not return back to the home until 5:30 on thursday evening. and that's when he found sheriff's deputies there. >> jon: and what about her truck? >> her truck is interesting. she was reported missing initially by a coworker at the dairy queen where she worked. deputies then, when they got that report, twice went to the house on the wednesday evening. they say that on both occasions the lights were on, the truck was in the driveway, and there was no signs of anything untoward having happened at the property. then, of course, the truck

turned up on thursday abandoned on the campus of kenyon college. that's when they decided they had to go back to the house. that's when they found the blood inside; jon? >> jon: jonathan hunt, thanks. in north carolina police are now confirming they identified the remains of a girl who disappeared last month. the father and stepmother of 10-year-old zarha baker reported her missing from their home. bone cancer had taken zarha's left leg and searchers found her prosthetic a few weeks after she vanished. now police say d.n.a. tests confirm the worst. >> i have been dreading this moment early on in this investigation. we have recovered enough physical evidence to believe we have found zarha. >> jon: investigators have cast doubt on stories from zarha's father and stepmom about her disappearance and prosecutors charged the stepmom with obstruction of justice in the case. but no word yet how zarha might have died or whether police plan to make any arrests.

beer and ballgames go together pretty well, at least they used to. now it seems they are in a bit of a fight. coming up, the biggest brewery in america takes on the national past time. plus, battle for the control of the republican party seems chairman michael steele is facing a bit of competition. that's coming up from the journalists of fox news. this is "the fox report." travel easier to book and more affordable. or, like priceline.com, you can dream it and do it. priceline.com lists on nasdaq, the world's most innovative can-do exchange. to stay fit, you might also want priceline.com lists on nasdaq, to try lifting one of these. a unique sea salt added to over 40 campbell's condensed soups. helps us reduce sodium, but not flavor. so do a few lifts. campbell's.® it's amazing what soup can do.™

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you've got a life to live. [ male announcer ] so don't blame it on aging. talk to your doctor and go to isitlowt.com to find out more. >> shepard: republicans may have made big gains in the midterm elections, but the head of the party may have a fight on his handif he wants to keep his job. republican national committee chair michael steele has spent much of his time on damage control. often generating criticism from within his own party amid a string of political gaffes. now he has his first official challenger. molly henneberg with the news live in d.c. tonight. molly? >> hi, jon. the former chairman of the michigan republican party came in third to steele in the party elections in 2009.

and now he says the republican national committee needs to shift. >> i think we need to change how we concentrate on raising money and getting a good ground game together, spend maybe less time, you know, giving speeches and being on television. and, you know, kind of have a different direction. >> michael steele, the current rnc chairman who did an interview with fox before the election has bristled at the suggestion that he has not been a strong fundraiser. >> do you know how much we have raised in the rnc in the last 18 months? $175 million. we have raised 175, a lot of zeros after it. and, you know why and how? those are dollars that are raised in small increments. $47 is our average donation. we have added over a million new donors. >> political analysts say steele has been cultivating relationships with many party leaders in the states and u.s. territories that may help him if he wants to run again. >> it's not a particularly

comfortable thing to try to unseat a national party chairman when that person wants to stay in office. ordinarily, these chairman are elected for two year terms but they get two, two year terms typically. >> steele has said he has not decided if he intends to run for a second term. republicans will decide -- meet to decide on new leader in january. jon? >> jon: the supreme court has decided not to get involved, at least not yet over the challenge on the pentagon's ban on gays serving openly in the military. the high court denying a request by a gay rights group that it stepped into the matter while a lower court is still reviewing it. a federal judge last month ruled the don't ask, don't tell policy is unconstitutional. but an appeals court ordered the policy to remain in place as it considers the obama administration's appeal. the postal service delivering some bad news about its own financial health. it turns out things were even worse this past year than

previously thought. the usps reporting a loss of $8.5 billion for the financial year which ended in september. it was expecting a loss of 6 or 7 billion. the postal service blaming shopper decline in the amount of mail it an handles as more people and businesses communicate throughout internet. the post master general has asked congress for permission to shut down some post offices and eliminate saturday mail service. remember the sultry spy anna chapman? well, now it seems the one who sold her out to washington may have actually been her old boss. and he had better watch his back. because there is word a russian hit squad is hot on his trail in the u.s. that's just ahead. plus, buy a truck and get a free assault rifle. it's a real deal and it's getting a lot of attention. details coming up. affect wheat output in the u.s., the shipping industry in norway, and the rubber industry in south america? at t. rowe price, we understand

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>> russia's president reportedly confirming that a high ranking kremlin intelligence official exposed 10 russian sleeper agents in that summertime spy scandal. we're told that official defected to america just before outing those spies. now there is word russia may have sent someone to kill him. you will recall back in june the fbi arrested these ten, charging them with acting as unregistered foreign agents for russia. who could forget media favorite anna chapman. she posed last month for russia's maxim magazine. russia release to the u.s. four people it suspected of working with western intelligence. this week a moscow newspaper broke the story of the double agent giving up those spies. today russian president medvedev quoted at the g.-20 summit in south korea saying the story was not news to him. prime minister vladimir putin a

former kbjb colonel traitors always end badly. they finish up at drunks, addicts, or on the street. david lee miller with the news live from new york. what do we know about this double agent, david? >> well, jon, perhaps most importantly, we know that without this double agent the world would probably have never heard of anna chapman. she would likely still be a spy. and not on the cover of men's magazines. now, the russian newspaper that broke this story says the double agent is colonel shabakoff we do not know his first name or age. there is no photograph of him. his job was to oversee russian spies deployed in the united states. he reportedly defected to the u.s. in june, just days before the spy scandal broke and the spies were actually arrested. jon? >> jon: how did this double agent actually help the u.s.? >> well, you know, it's not entirely clear what precise role he played although it is significant. consider this. one of the accused spies was in

u.s. custody repeatedly claiming that he was, in fact, peruvian and not a spy. at this point the u.s. sent him the double agent. he walked into the prison, confronted the accused spy with his dose from moscow and 'fessed up. some of these spies had been under u.s. surveillance, jon for 10 years, suggesting the colonel may have been a double agent for that long, possibly even longer. jon? >> jon: what are they saying in moscow about all of this? >> moscow is clearly on upset but at the same time they are trying to do a little damage control and down play what has happened here. russia's president today said that the details emerging now, at least to him, are nothing new. >> i knew about it all. with all the various details on the day it all happened. now the investigation has to run its course. let's see what it brings. in any event, we need to learn

the necessary lessons from this whole affair. >> and the newspaper that broke the story says that the colonel is now a marked man. it says that there is an assassin that is closely on his heels. jon? >> jon: david lee miller. thank you. a truck dealership in florida has a special offer for its customers. buy a truck, get an ak-47 for free. you don't drive away with the assault rifle though, just a voucher. >> now, you take that voucher, you go down and shoot straight, you present the voucher, they will fill out all federal forms and state forms, do a background check. if you are eligible for that weapon, you will be entitled to it. >> jon: if assault rifles aren't your thing you can get vouchers for other stores or 400 bucks off the truck price. mixed reaction so far. >> i'm getting ready to buy a truck because i need it for pulling my race car and stuff. and i figure it's a beautiful selection. i come here and get a free gun.

>> those guys next door giving away ak-47. i was shot 14 times in vietnam by that right. hell of a rifle, kills a lot of people. got no business giving those rifles away. >> we spoke to the dealership sales manager. he told us he has had dozens of responses since word got out. as of earlier this afternoon he said only one person had actually walked away with a gun voucher. there is one last chance for the current congress to make its mark before all the newly elected lawmakers take office. the expiring bush tax cuts top the agenda. and it appears house speaker nancy pelosi intends to go out fighting. details straight ahead. plus, facebook planning a big announcement next week. there is word the social networking giant is gunning for google. but, first, log on to foxnews.com for more on that russian spy saga. it's all there in the features and faces section. just head to our home page at foxnews.com.

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>> jon: fire crews reportedly check out a late night call about smoke at a strip mall and leaf. hours later they are back as flames tear into two stores. our top story on a fox trip across america. indiana, we're told the three alarm blaze started at a dunkin donuts store outside indianapolis and then moved to a wine making shop. the fire also threatened other businesses in the strip mall. no immediate reports of any

injuries. texas. a chain reaction wreck west of downtown dallas. a tractor-trailer rig rear ending a cement truck. we're told that cement mixer flipped over the freeway's center barrier and hit another big rig plus four passenger vehicles. six people hurt. ohio. police looking for the driver of the suv you see in this surveillance video at a wal-mart parking lot in grove city. cops say that driver asked the pedestrian for directions. grabbed her purse and drove away. the victim dragged more than 10 feet caught by the straps on her purse. she reportedly broke her shoulder. new york. [cheers] >> jon: a 74-foot norway spruce ready for closeup. workers cut down the tree yesterday north of new york city and hoisted it into place in manhattan's rockefeller center. the lighting ceremony set for the last day of this month and that's a fox watch across

america. >> i'm jon scott in for shepard smith. this is the fox report. it's the bottom of the hour, time for the top of the news. as the white house remains vague on whether it will support a temporary extension of bush era tax cuts for everyone, including the wealthy. house speaker nancy pelosi making it perfectly clear today where she stands in a radio interview with npr. >> our position in the house has been that we support the tax cut for the middle -- for everyone but not an additional tax cut at the high end. it's too costly. those tax cuts have been in effect for a very long time. they did not create jobs. >> jon: pelosi and other democrats will soon be among the minority in the house but they remain in power for now as congress is scheduled to convene for a lame duck end of the year session next week. james rosen is live in washington now with more on how

this is playing out. james? >> jon, good evening. lawmakers will have to tackle next week what they in their puke -- peculiar language. the federal government cannot continue legally operating. democratic and republican leaders remain most starkly at odds over exexpiring tax cuts. nancy pelosi was sending a message to the man who will next wield the speaker's gavel house g.o.p. leader john boehner who favors making all the tax cuts permanent for all income brackets. but analysts said pelosi was sending a message to president obama and his senior advisor david axelrod who told the huffington post on thursday that democrats have to deal with the world as we find it. >> right now the white house and nancy pelosi seem to have a very different take on the election as well as the strategy going forward against republicans. speaker pelosi wants to be more defiant and to confront republicans. >> i think the president has a

slightly different agenda here. he still has to pay attention to campaign contributors. his politics on this thing are slightly to the right of where most's are. >> there will actually be two lame duck sessions. each lasting about a week. the first set to begin on monday, jon? >> james rosen, thanks. a top senate republican says he is willing to compromise on the tax cut orrin hatch says he would be willing to accept a temporary extension of the tax cuts instead of the permanent extension he says he really wants. like other republicans he is holding firm in his assertion no one's taxes go back up. the president is blaming games with it acting like he is the only one who cares for the middle class there isn't anybody who doesn't the middle class to have this tax relief. we also need to have 750,000 small businesses that would be thrown into that extra tax that the president wants to charge and that's where we create 75% of all new jobs. so, it's just stupid to not kick it completely over. i think the president knows that

>> jon: political analysts expect hatch next year to become the top republican on the senate finance committee, the committee in charge of writing tax policy. a new study suggests arizona's hispanic population has dropped significantly. according to the study's authors the state's tough new immigration law may be part of the reason. you will recall among other things the law would have required police to check the immigration status of anybody they stop or arrest and made it a crime not to carry immigration registration papers. but a judge put those and other parts of the law on hold back in july pending a thorough review. trace gallagher live in our west coast news hub. trace, where are they getting their numbers? >> well, jon, every month the census bureau surveys 50,000 families about who is working, who is going to school and who is moving. the study took those numbers along with numbers from the mexican government to come up with 100 illegals leaving arizona over the past five months. now, experts say that some of them have left because of the new arizona immigration law.

but mostly, it's because of the economy because tourism jobs are down, construction jobs are down. but lawmakers say if it is because of the new law, well then so be it. listen. >> it's because of this bill, then hopefully we're sending the illegals back home where at least they are willfully want to go there or moving on to another state. >> trace: by the way the mexican government estimates that 23,000 illegals have moved from arizona back into mexico over the past five months, jon. >> jon: there is word violence in mexico is pushing them back toward the u.s. >> yeah, when the leader of the golf cartel tony the storm was killed there was a bloody battle to figure out who would replace him. and now there is word that there is now a new ground war in the tiny town of ciudad, which is 50 miles north of texas. 50 families are fleeing that

town into mccowan, texas. on top of that, there is some 350 families that are hold up in a hotel near that town waiting for the government to evacuate them. all that is added on to the fact that tens of thousands of mexicans have fled the drug violence along border cities in mexico into the united states over the past four or five years, jon. >> jon: trace gallagher, thanks. news bytes now. and there is growing concern that the internet could soon run out of space. british media reporting one of the creators of the internet says the current system we use to find web sites could fill to capacity by early next year. he is urging service providers to adopt a new upgreated system for room for trillions of new web addresses. one of the original apple computers will soon be up for auction at christies in london. the apple one hit the tech scene in 1976 and sold for just under

700 bucks. reports indicate that this is about 200 ever produced and comes with the original packaging, manuals and signed letter from apple ceo steve jobs. the thing could sell for more than $200,000. is facebook gunning for google's g-mail? some tech reporters believe this invitation for facebook on monday means the social networking site is set to announce plans for full-fledged email service. we're told that behind closed doors, facebook is calling the project the g-mail killer. baseball's facing tough times just like the rest of the country. lower tv ratings. sponsors pulling out. and now a lawsuit from the king of beers. anheuser-busch, the maker of budweiser, the beer maker accusing major league baseball going back on a signed deal to renew sponsorship and then demanding more money. the lawsuit reads anheuser-busch has spent decades and millions

of dollars building the reputation and goodwill of budweiser and other an high pressurer bush. rich edson with the news. what is major league baseball's response? >> jon, baseball officials say they are still waiting to seat lawsuit. a league spokesman says major league baseball properties hasn't been served with the complaint and our lawyers have yet to review it we don't normally discuss active litigation. however, we have a different view of what's been reported. those reports say anheuser-busch charges major league baseball with going back on that sponsorship deal because the league wants more money, jon. >> jon: some analysts say mlb is getting ready to negotiate with coarse. >> the current national beer with the national football league is coors light. miller coors the second largest beer he willer in the country may be looking for another high profile sports league. in light of these reports major league baseball may be looking for official beer sponsor. just that simple, jon. >> jon: rich edson, thanks.

some states may be putting the brakes on plans for high speed rail project. straight ahead, why politics over stimulus funds could keep trains from ever hitting on the tracks. plus, one big city's battle over toys in fast food meals might not be over. what the mayor is doing to try to keep kids happy when the fox report continues. mom, i worry about my son playing football. which is why i'm really excited. because toyot developed this software that can simulate head injuries and helps make people safer. then they shared this technology with researchers at wake forest to help reduce head injuries on the football field. so, you know, i can feel a bit better about my son playing football. [ male announcer ] how would you use toyota technology to make a better world? learn how to share your ideas at toyota.com/ideasforgood. hiwhere we build eachre it all sof our customers. learn how to share your ideas a better banking experience. here, we're working on something really special

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so why am i still thinking about this? how are you? good, how are you? [ male announcer ] aleve. proven better on pain. >> jon: a federal judge today sentencing a former university of tennessee student convicted of hacking into sarah palin's email account. david kernell was a 20-year-old economic major during the 2008 presidential election when he correctly answered security questions to read palin's private emails. today the judge sentenced kernel to a year and a day but recommended he serve the term in a halfway house, not prison. kernel today apologized to sarah palin, a fox news contributor and to her family. it is now up to the bureau of

prisons to decide if palin can go to the halfway house. the happy meal lives on in san francisco. but probably not for long. four days after the city banned most mcdonald's happy meals, the mayor has vetoed that ban, problem is. the board of supervisors passed the law with enough votes to override the veto. the mayor says he supports the effort but thinks parents, not politicians should decide what their kids eat. >> the government framework of alternatives. but not dictating or prescribing exactly how you can provide a meal. >> jon: the so-called happy meal ban is meant to fight childhood new set of traditional standards -- nutritional standards for meals that come with toys. >> jon: more problems for alaska senate candidate joe miller.

according to the state attorney general's office the tea party favorite has filed an election lawsuit in the wrong court. miller's suit challenges the legality of certain write-in ballots for senator lisa murkowski claiming alaska election officials are improperly counting ballots that don't have her name spelled exactly right. the attorney general says miller filed his latest challenge in federal court. but that the state court is, quote, the proper forum for this case. meanwhile, as the count continues, we're told senator murkowski has 90% of the write-in vote. dan springer with the news from juneau, alaska. joe miller is an attorney. what is he saying about the filing of the case in the wrong place. >> well, of course, he is defending that he filed this suit in federal court and that that is the right place for it he says this is a federal matter. but, of course, you are hearing that the attorney general in the state of alaska says this is a state matter. this is a challenge to how the state elections division is handling the state election law, which says that the writing on

the ballot, the write-in name has to appear as it does in the candidacy fill-out form. and so you have this debate over which venue is the right place. but it's going to proceed in federal court, at least until the judge decides whether the venue should be moved over to state court. jon? >> jon: so as more ballots are counted, are we seeing anything different? >> yeah, today we saw something interesting. later in the day we saw that the percentage of challenges to ballots that were filled out with lisa murkowski's name spelled correctly actually dropped and so that's good news for the murkowski team because it shows that the number of ballots that are unchallenged is continuing to go up. 50 some thousand midday and that's going up each and every hour as we see fewer and fewer challenges to ballots where the name is spelled correctly. seeing the body language of the people challenging votes it seems like they are not quite as engaged and challenging as many ballots. this thing, you know, it could

possibly be that this is over before it goes to court and that we don't have to have a court decide the winner here in alaska, jon. >> jon: dan springer live in juneau. thank you. a battle over a high speed rail proposal in the midwest could have a big impact on jobs. a train company threatening to move to another state if the republican governor elect goes ahead with his vow to stop the high speed rail project in his state. it would link madison, wisconsin to milwaukee and other major cities. but the money from the project comes from the federal stimulus. the governor elect says he doesn't want the state stuck with the bill for maintenance. a bill that could reportedly total more than $7 million a year. mike tobin with the news live from our midwest newsroom. mike? >> well, jon, there is something you don't see very often. state politicians refusing huge federal grants. but incoming governors of two states, ohio and wisconsin are saying those federal dollars carry a heavy price tag.

hundreds of millions in federal dollars earmarked to build high speed rail lines. the incoming governors of ohio and wisconsin are saying no thanks. >> we don't have any idea who would even ride the train. this is just the federal government wanting to spend money. >> in wisconsin 810 million federal dollars would build a line between madison and milwaukee. but governor elect scott walker says the trains would not be solve ago big traffic problem. they would, however, create operating expense per state taxpayers. >> we should be spending our money fixing our roads and our bridges and not on creating a new infrastructure that we don't need not only in wisconsin but across the country. >> u.s. transportation secretary ray loo hood sent letters to both governors elect saying none of those funds may be used for anything other than our high-speed rail program. with that, politicians in other states offered to take those hundreds of millions of dollars to build rail lines. >> i will tell you wisconsin and ohio will look back and say we

missed an opportunity. >> wisconsin congresswoman gwinn moore agrees. she believes development will gravitate to the states with modern transportation like high speed rail. >> i don't want to build a fence around wisconsin where all of the commercial traffic and economic development stops at the wisconsin border. >> now the transportation secretary also wrote in his letters that some 34 rail manufacturers have given him guarantees that they could relocate operations to the united states and the strong hint you get between the lines in his letters is they could be bringing both jobs to ohio and wisconsin. jon? >> jon: mike tobin, thank you. it once survived a volcanic eruption but now one of the world's most famous wonders is falling apart piece by piece. ahead, what some now say is really to blame. new questions about the case of a convicted killer. why one legal group says officials may have executed the wrong man a decade ago.

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>> jon: a d.n.a. test raising new questions about whether a texas jury convicted the wrong man for a 19 9 murder. trouble is, the state already executed him. kris gutierrez is live in our dallas newsroom. kris, what do we know. >> john clawed jones was actually sentenced to death back in 1989 for killing a liquor store owner. the only physical evidence in this case was a piece of hair found at the crime scene. an expert testified that hair belonged to jones but today we learned it actually belong to the victim himself, jones later requested a d.n.a. test but he never got it. listen. >> if that d.n.a. test had been performed, we know there would have been plenty of data about

guilt. this conviction would have been reversed and this execution would have not have taken place. that's the truth. >> instead jones was executed nearedly 10 years ago, jon. >> john: the governor at the time george w. bush never knew about jones request for d.n.a. test. >> you are exactly right. bush relied on information provided by his general counsel's office. the problem is they never mentioned the fact that jones was looking for a stay based on this new d.n.a. test they requested. bush had delayed executions for similar requests in the past. in fact he did so for another inmate just six months before jones was executed, jon. >> jon: the folks who this test have exonerated other prisoners. jones' case is different from the others, why? >> that group is the innocence project. they look to exonerate the wrongfully convicted by using the more modern d.n.a. tests. they say anywhere from 2 to 5% of all the prisoners locked up right now are probably innocent. they are not though saying that jones was 100% innocent in this

case. for the record, jones did have a lengthy criminal history. the innocence project are arguee should never have been on death row based on the hair evidence that was used to convict him, jon. >> jon: kris gutierrez live from dallas, thanks. sea rescue crews from one country racing to the site with another nation's cargo ship went missing. our top story as we go around the world in 80 seconds. >> jon: japan, emergency teams from patrol vessels rescuing three chinese crew members from tie within a knees freighter. it reportedly sank 200 miles south of a japanese island. you can seat trouble the rescuers had with the rough seas. we're told the japanese coast guard workers along with a team from taiwan rescued five sailors but two later died. 20 other crew members from the cargo ship still missing. united kingdom. >> 43 million pounds.

sold! >> jon: that's more than $69 million for this 18th century porcelain vase from china that's believed to be the highest price ever paid for any chinese artwork sold at auction. greece. [shouting] >> jon: right police clashing with dock workers. we are told those workers demanded to speak with government officials about reforms that would include cuts in jobs and pay. italy, workers say nobody could have predicted the collapse last week of a 2,000-year-old house in pompei. we're told gladiators once used the structure to prepare for combat. archaeologists and others have accused italian government officials of neglect and mismanagement and that's a wrap on this fox trip around the world in 80 seconds. a fox urgent now and a senior g.o.p. official now confirming to fox news that texas governor rick perry does, in fact, have the votes to head up the

republican governor's association. a soaks person says the governor would be pleased to serve as chair if elected next week. mississippi governor haley barbour is the organization's current chairman. governor perry has said he has no white house aspirations and taking the job as chairman would appear to be solid evidence of that. now, bear alert. and cute critter alert. britain's only polar bear getting a new friend. don't expect cubbies any time soon. plus, more hairy potter -- harry potter books? that's next. [ rattling ] [ gasps ] [ rattling ] [ laughing ] [ announcer ] close enough just isn't good enough. - if your car is in an accident, - [ laughing continu ] make sure it's repaired with the right replacement parts.

take the scary out of life with travelers. call or click now for an agent or quote. my professor at berkeley asked me if i wanted to change the world. i said "sure." "well, let's grow some algae." and that's what started it. exxonmobil and synthetic genomi have built a new facility to identify the most productive strains of algae. algae a amazing little critters. they secrete oil, which we could turn into biofuels. they also absorb co2. we're hoping to supplement the fuels that we use in our vehicles, and to do this at a large enough scale to someday help meet the wor's energy demands. to bring you a low-price medicare prescription drug pn called the humana walmart-preferred escription pn. it's a new plan that covers both brand and generic prescriptions and has the lowest-priced national premium in the country of only $14.80 per month and in-store copays as low as $2. when you could save over $450 a year,

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okay, now here's our holiday gift list. aww, not the mall. well, i'll do the shopping... if you do the shipping. shipping's a hassle. i'll go to the mall. hey. hi. you know, holiday shipping's easy with priority mail flat rate boxes from the postal servic if it fits, it ships anywhere ithe country for a low flat re. yea, i know. oh, you're good. good luck! priority mail flat rate shipping starts at just $4.90 only from the postal service. a simpler way to ship. >> jon: a fox news bear alert now and what was the only polar bear in the united kingdom now has a playmate. keepers at the highland wildlife park in scotland introducing a 23 month old male bear walk tore

mercedes, an older female bear. we're told the pair is not expected to mate. zoo officials after mercedes dies they plan to bring in another female polar bear to breed with walker. prepare yourself harry potter fans new word the book may not be finished. the latest potter movie quote if in ten year's time i wanted to do another one, i probably would. but she added that future books likely would not feature harry as the main character. last year daniel radcliff who plays harry in the film see she told him there would be no more books. last month she told oprah she might have second thoughts about that. and on this day in 1980, the voyager one flew closer to the planet saturn than ever before. three years after launched into space. the space agency sent the un-manned craft to capture pictures of a number of planets. got