this is "world news." tonight, the american drone down. do the iranians have it? the military mystery tonight and the growing concern, how much intelligence was the drone carrying? what secrets could it tell? martha raddatz standing by with her reporting tonight. the cain collapse. six days until the abc news republican debate. tonight, the shifting sands in the republican race, the new numbers telling a brand new story. the coach being coached. the man at the center of the penn state scandal asked again about being attracted to children. and tonight, the moment his attorney steps in to help him. bringing america back. finally, the companies resuming those 401(k)s, some offering more. and tonight here, how you can get the most money you can. and priceless. but not for long. elizabeth taylor's glittering jewels drawing giant lines all weekend. tonight, no wait here. we'll take you straight to the front of the line.

and good evening. we begin this sunday night with a developing story and some very urgent questions about a sensitive and sophisticated piece of american military might. a u.s. drone that could very well be in the hands of the iranians tonight. it's a drama unfolding right now and what's not known is just what kind of intelligence, how much of it was carried by that drone. abc's martha raddatz has been working her contacts all day and she leads us off right here tonight. >> reporter: the chilling claim came today on iranian state television, which quoted sources saying iran had shot down an unmanned spy plane in the eastern part of the country which borders afghanistan. but what was most disturbing, the iranians said it was an rq-170. one of those super secret drones, although it has appeared on the internet, that can presumably operate without detection.

the iranians have lied about such things in the past. but alarms went off just a few hours later, when the u.s. said in a statement that they had lost control of a u.s. unarmed reconnaissance aircraft over western afghanistan. the u.s. will not say what type of drone crashed but it was not shot down, though a u.s. senior military official told abc news that "we are assuming iran has something." there are provisions built into drones to protect sensitive technology. if contact is lost, that information can be remotely erased. but if this is indeed a stealth drone, pieces of the skin itself could be used to try to duplicate stealth surfaces. remember that stealth helicopter that went down in the bin laden raid? pakistan reportedly let china have a look at that technology. >> there are important secrets that can be lost either by looking at the kind of material that is used on the skin of a

stealthy airplane or looking at the kinds of shapes. >> reporter: this comes at a tense time with iran, reports that they continue to work on nuclear weapons, tighter sanctions and recent storming of the british embassy by iranian hardliners. >> and martha is with us from washington. martha, the iranians are making this claim. but what do you make of the fact that there have been no images released of what they have their hands on? >> reporter: i think that's really baffling u.s. officials. they wonder why they are not presenting any kind of proof, if they have it. but frankly, they are bracing themselves in case pictures do come out. >> martha raddatz, thank you. this will surely be an issue taken on by republican candidates this week. that's where we turn next tonight, to your voice, your vote, and to a seismic shift in the republican race this weekend. now just six days until the abc republican debate in iowa. look at the numbers from our debate partner, "the des moines

register," showing newt gingrich surging at 25%. ron paul at 18% and mitt romney at 16% among republican voters in iowa. that poll was taken even before herman cain's campaign collapsed this weekend. cain did not go quietly. and the question now, where will his supporters go? here's abc's david kerley. >> reporter: tonight, it's looking like a two-man race. gingrich versus romney for the republican nomination, with the field shrinking by one. >> i am suspending my presidential campaign. >> reporter: herman cain called it quits, but remains defiant on those accusations of sexual harassment and a long-term affair. >> because of these false and unproved accusations, it has paid and had a tremendous, painful price on my family. >> reporter: this woman's story of a 13-year affair sent cain home to meet with his wife. but gloria cain was there as her husband bowed out. >> i am at peace with my god.

i am at peace with my wife. and she is at peace with me. >> reporter: today -- >> i feel bad for herman. >> reporter: the rest of the republican field -- >> he brought so much energy. >> reporter: -- couldn't say enough nice things about cane. >> i wish him well. >> reporter: all hoping to snag his supporters and endorsement. >> newt gingrich is most likely to benefit from herman cain's departure. because he likes newt gingrich and he's likely to say good things about newt gingrich. >> reporter: more good news for gingrich who is not only leading in that iowa poll, but also has moved up in new hampshire. but romney is still 16 points ahead there. so, is it now a two man race? >> i was supposedly dead in june and july. apparently i'm not now. so i'm not going to say to any of my friends that something can't surprise us. >> reporter: even romney is beginning to feel the heat. >> i've been able to withstand the scrutiny and still remain a strong contender, i hope that continues to be the case. >> reporter: romney told

supporters he's been a steady campaigner and promised to have a campaign performance of a lifetime. romney and gingrich are at opposite sides of the country in the next couple of days. they cross paths here in washington on wednesday. david? >> all right, david kerley in front of the white house tonight. david, fascinating to see everyone around herman cain now, saying kind comments. i want to bring in now senior washington editor rick klein. and rick, as you know, we've been pouring over this poll all day. curious what you thought of the numbers tonight. voters were asked who their first choice is, second choice is. 43% say they're so convinced newt gingrich is not only their first but he's their second choishgs as well. 31% said as much as romney. so, what does it say to you about momentum? >> reporter: the momentum is all on newt gingrich's side. he's done something that's very hard to do in politics. he's turned around negative perceptions of himself and his candidacy and now he's dealing with a wider poll of voters who are willing to give him a shot. one other note from that poll,

from "the register," gingrich came in second place on the question of most likely to have a scandal in the white house. behind only herman cain. >> just six days until the abc news debate, next saturday night. how crucial will their performances be, particularly we're talking about gingrich and romney here? as they both fight for this front-runner status. >> reporter: it has all the makings of a decisive moment. this is the first time they will face each other down as front-runners. gingrich is going to try to scoop up cain supporters and romney is facing a new rival. this time, one who is a skilled debater and shows no signs of imploding on his own. >> all right, rick klein, thank you. and again, we hope you'll mark it down, next saturday night. the republican presidential debate, right here on abc. diane sawyer, george stephanopoulos moderating. it begins at 9:00 p.m. eastern/6:00 pacific. we will all be there. we hope you are, too. next tonight here, we turn to the new comments from jerry sandusky, the former penn state coach, speaking out about the child sex abuse charges against him. and when the reporter asked whether the coach is attracted to children, he begins to answer. and then watch what happens as the coach is coached by his attorney. here's abc's t.j. winick.

>> reporter: in this no holds barred interview with "the new york times," jerry sandusky maintains he is innocent of molesting eight boys over 15 years. >> i didn't do those things. >> reporter: so, why has the former penn state assistant football coach had such a difficult time tackling the one question everyone wants answered? first posed to him in a phone interview last month. >> are you sexually attracted to young boys -- to underage boys? >> am i sexually attracted to underage boys? >> yes. >> sexually attracted, you know, no. i enjoy young people. >> reporter: for sandusky's alleged victims and their families, it was an especially cringe-worthy moment. >> i asked him about how, you know, he felt he had done on the answer and mr. sandusky said he wished he had done it differently. >> reporter: but just like the first time around, the 68-year-old accused pedophile seemed incapable of answering directly. >> i was sitting there, saying,

"what in the world is this question?" you know, what -- what is -- you know -- am i going to be -- if i say, "no, i'm not attracted to boy us," that's not the truth because i'm attracted to young people, boys, girls. >> reporter: his attorney, joseph amendola, sitting offcamera, had to rush to his client's defense. >> yeah, but not sexually. you're attracted to them as in you like spending time with them. >> right. that's what i'm trying to say. i enjoy spending time with young people. >> that's a question that's ready to be hit out of the ballpark. are you sexually attracted to young boys? the answer is no. >> reporter: and while sandusky's non-answer may not play well in the court of public opinion, espn legal analyst roger cossack says, in court, it proves nothing. >> it's hard to say, you know, by his fumbling a bit whether or not that indicates anything other than just a man who is

uncomfortable in his surroundings or a man who is lying. >> reporter: so, why is jerry sandusky even doing these interviews? one theory is so he can make his case while avoiding the witness stand and cross examination during a potential trial. david? >> t.j. winick, thank you. and a troubling scene this weekend when a college football celebration turned to chaos. thousands of fans rushed the field after oklahoma state beat arch rival oklahoma. some were even trampled. at least 13 people were injured. two of them critically hurt. tonight, meanwhile, millions of people in the west are bracing for a new round of wicked weather, right on the heels of those extraordinary santa ana winds that have left so much damage in their wake. tens of thousands are still without power tonight. and these new winds, though not as powerful, bring an entirely different threat. and so we turn to abc meteorologist ginger zee, tracking this really all week. and we're back at it. >> reporter: yes, this is another case. and that's the thing. last week, it was an extreme case. this is more typical but we have a new threat, as you mentioned. high pressure coming into the great basis. you have clockwise rotating winds around it. it will hit the basin and go down slope.

it will squeeze between canyons and passes and the winds speed up. that's how we get the 150-mile-per-hour winds of last week. this week, more like 70-mile-per-hour winds. it begins tonight, l.a. proper won't go much above 25 or 35-mile-per-hour gusts. however, you have debris from that last storm, and that can act as projectiles. secondly, you have a red flag warning, meaning lots of fire danger. >> play it safe with the debris out there on the ground. and you were telling me before we went on the air, it's done by tuesday, wednesday? >> reporter: tuesday morning. >> ginger zee, thank you so much. tonight, meanwhile, to major changes coming from the post office. there is word this evening of drastic new cuts to be announced tomorrow. everything from the checks you send to the prescriptions delivered to your door will be slower. the postal service, buckling under crushing losses, as you know, is now cutting another $3 billion. and starting next spring, first class mail delivery will take an extra day or two, no longer one-day delivery, even if it is

just the next town over. and half the country's 500 mail processing centers will be closed. but on a more hopeful note tonight, a sign some businesses are helping to bring america back, by bringing back 401(k)s, put on hold during the recession. now some businesses are not only bringing back the company match, they're beating it. here's abc's chris bury. >> reporter: at the motley fool, a virginia firm that sells investment advice, the holiday just got brighter. this company and hundreds of others, are giving back what they took away during the darkest days of the recession. matching contributions to those popular 401(k) savings plans. >> i think it's excellent news for the economy. 401(k) match from a company perspective is an expense but also an investment in the future of their employees. >> reporter: employees here had a stark choice. give up the 401(k) match or perhaps lose their jobs. >> we agreed that layoffs were going to be off the table. but in exchange for that, everything else was on the table. >> reporter: for millions of americans, retirement savings took a big hit during the

recession. stocks are still down more than 20% from their peak. but now with the economy picking up, employers such as fedex, starbucks and u.s. steel are bringing back the company match. a new study finds more than 75% of firms that cut back or cut out contributions have now restored them. >> even with companies reinstating their 401(k) match, that's only half of the news. the other half of the news is how important it is for employees to be saving on their own. >> reporter: in most retirement plans, for every $100 you save, your employer chips in another $50 up to a certain level. literally free money. one reason companies are contributing again, the study finds, is a fear their employees might not save enough to retire in a timely and efficient manner. in other words, to avoid an older, more expensive work force. at motley fool, the company made up for the contributions it had cut and also added 30% on top of

that to help cover any investment losses. a stocking stuffer just in time for the hold days. for the holidays. chris bury, abc news, chicago. >> all right, chris bury, thanks to you. i want to bring in abc's bianna golodryga. who covers the markets for us. bianna, great to see you. and great to see the companies bringing back the 401(k) match. but chris told us earlier that 1 in 3 americans don't take advantage of the full company match. understandable in this economy, but if you can, makes a huge difference. >> reporter: such a huge difference, david. take a look at the graphics we put together. say you're making $40,000 a year, you are 40 years old, you decide to contribute 2% of your earnings. by the time you retire, 25 years from now, you'll be bringing home $100,000 in 401(k), $30,000 of that coming to you free from your company's match. >> but if you can put aside 6% and the company will match that, it adds up a lot faster. >> reporter: yeah, look at this number. 6%, you bring home $280,000 in 25 years, $100,000 of that coming to you free from your company, david. >> if you can pull it off.

>> reporter: yes. >> and bianna, on the eve of another week for the markets, last week, up 700 points, now in positiver the troir for the year. this is good news. but the question is, how do we keep the markets going in this direction? >> reporter: all eyes once again will be focused on what happens in europe. we saw the huge rally last week because of that coordinated effort by the global central rate bank to lower borrowing rates. this week, we're going to see if a deal is passed in europe, and if it is, markets like it, we could see another rally. >> all right, bianna, thank you. still ahead here on "world news" this sunday, this weekend, the city where thousands of people were sent scrambling, forced to evacuate because of a world war ii bomb. the budget busting at buckingham palace. what taxpayers have told the queen and what prince charles will now pay for. and later here, the enormous lines this weekend to see the priceless jewels. priceless not for much longer, on the eve of the elizabeth taylor auction.

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blockbuster, designed to destroy buildings. lodged into the river bed, it was only discovered when drought lowered the levels of the rhine river. if it had exploded, experts say it would have sent shrapnel flying through the air for over a mile. that is why it turned into the biggest evacuation operation in germany in more than 60 years. 45,000 people, half of the population living near the site, including hospital patients and prison prisoners, were forced to find a safe spot. unexploded bombs are common in europe. in france alone, 900 tons of ordnance are discovered and destroyed every year. with 1 in 8 of the bombs dropped by the allies still unexploded in europe, they remain a hidden and deadly threat. lama hasan, abc news, london. and when we come back here on "world news," the big change at buckingham palace. what taxpayers are telling the queen and the prince. . what do you mean? it ends december 7th.

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footing the bill for their travels and their security. prince charles will pick up the tab. it's the latest move by parliament to cut the kingdom's own deficit. the monarchy's budget has been trimmed already, but now there's more. no repairs for the royal palaces and fewer royal parties, too. but the queen already has a reputation for being frugal. >> don't really realize that the queen is going around buckingham palace turning off the lights, having fewer staff and in the winter turning the heating down. she sometimes even writes letters in her very old fur coat. >> reporter: the queen has even offered to rent out part of st. james palace during the 2012 london olympics. but even though there may be cuts, parliament knows that the royal family is a huge tourist magnet, bringing in $785 million to great britain every year. they're not going to cut too much. when we come back here on "world news," so many long lines here in new york this weekend, but we give you a front row seat at the elizabeth taylor jewel n.ction.

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and finally tonight here on the broadcast, a look that all that glitters, sparkles and shines, almost nine months now after elizabeth taylor died. her breathtaking jewelry is up for auction now. though there are long lines stretching around the block here in new york city, we get you past the velvet rope. >> elizabeth taylor was voted best actress. >> reporter: she was the epitome of hollywood glamour. those jewels, her signature. most extraordinary, the diamonds, the sapphires, the rubies, many of them are gifts from two of her seven husbands, the two whom she loved the most. theater and film producer mike todd and actor richard burton, whom she married twice. this 33-carat diamond ring could go for $3.5 million, and many say that's a conservative guess. a gift from husband number five and six, richard burton. >> he bought it for over $300,000, which, at that time, was a huge sum of money. she called it her baby. she wore it every day. it's the piece she was photographed most in and something that she loved to wear and she loved to actually share

it with people and loved that people admired it. >> reporter: this ruby and diamond necklace, a surprise gift from husband number three, movie producer mike todd. and also up for auction, this necklace, including one of the most perfect, largest pear-shaped pearls in the world. the same found in this painting by velazquez, once part of the crown jewels of spain. and finally, long lines to see this, the antique diamond tiara she wore to the 1957 oscars that was also a gift from husband mike todd, a gift he sealed with a kiss. holding the oscar and she wearing the tiara. that is "world news" for this sunday night. we are always online. don't forget "gma" in the morning and diane sawyer right here at the desk tomorrow night. have a good night, everyone.

>> a san francisco apartment building goes up in flame dozens are looking for shelter. >> good evening. officials say a discarded cigarette is to blame for sparking the fire that forces dozens from their hoped. it happened in a six story building in the tenderloin district. we're live with the details. >> reporter: we're on eddie street and the fire happened in this building. crews have been in it all day, repairing the smoke and water damage. the fire started on the second floor of the apartment building. firefighters say it started in a light well where someone discarded a cigarette. the fire burped up the air shaft the fourth floor, where firefighters stopped it but flames flared up again and made it up to the sixth f