deadly blizzard creates travel chaos. >> causing traffic to absolutely stall to a stand still. >> shepard: now families stranded. hotels filling up. >> looks like we'll be hanging out in vegas a little bit. >> shepard: rescuers on the move. we will take you to the white-out in the great plains. plus, a suspect brings his 4-year-old daughter on a nighttime police chase. >> did you kidnap your kid? >> tonight, a custody crisis goes way too far. >> shepard: but first from fox this tuesday night. gridlock. dead lock. stalemate on capitol hill. if it's possible for congress to get more unpoplar, this might do the trick. president obama telling house republicans to do the right thing and prevents a new years tax hike for every american who gets a paycheck. the president interrupted the white house briefing today to send a message to the house speaker john boehner. remember, the senate overwhelmly passed a bill on saturday to extend the payroll tax cut. 80% of senate republicans voted for it. but today house republic leaders rejected the bill without even letting lawmakers vote on it. ed because of their refusal to cooperate all of those americans could face a tax hike in just 11 days. i'm calling on othe speaker and the house republic throip bring up the senate bill for a vote and give the american people the assurance they need in this holiday season. >> president obama needs to call on senate democrats to go back into session, move to get a conference and to sit down and resolve this bill as quickly as possible. >> i need the president to help out. all right? [cheers] >> shepard: tonight it, seems most lawmakers are heading home for the holidays. mike emanuel is on capitol hill for us tonight. mike, the two sides seem rock solid in their positions. the question is will one side or the other give in? where does it stand? >> shep, it feels like the senate democrats and the house republicans are staring each other down and everybody here on capitol hill is waiting for them to blink. let me give you a taste of what the tone was like at the end of the day on the house floor. take a listen to this. >> the house has acted. it's up to the senate to stave off this. >> there is clearly a difference in this house on a number of things. one of the things that i don't think we differ on is a confidence or a lack of confidence that the senate will do its job. i don't think we differ on that greatly. >> that's when you think each guy would be wishing each other happy holidays, merry christmas, see you next year and they were still slugging it out until the very end, shep. >> shepard: what about rank and file members, mike. where do they stand? >> i should point out we saw them busting out of here heading for the airports going home for the holidays at about 4:20 this afternoon. before that, they were slugging it out as well. essentially republics saying we need a full one year deal. we need economic certainty. democrats saying take the two month deal. we can work out a full year deal later. and so bottom line they were slugging it out just like their leadership and it seems like both sides are really stuck at this point, shep. >> shepard: mike emanuel live on capitol hill tonight. mike, thanks very much. the white house says president obama is willing to stay in washington to try to get a deal done. but it also says he can't be a marriage courtroom for house house -- counselor for house and senate republicans. what can he do? live at the white house for that part coming up inside fox report. there is trouble in north korea, it could destabilize the region, even the world. tonight, there are enormous questions about who is in charge of that nuclear nation after the death of the dear leader, kim jong il. we know his son is supposed to be the successor but kim jong un is young, in his 20's, we think, without much experience at all. and if a power struggle beginnings, it could cause an already unstable region to collapse into chaos. north korean state television aired images of people paying respects to the dead dictator. his glass coffin resting on a bed of kim jong ilia flowers. they're named after the dear leader himself. his son, the so-called great successor among the visitors. it's tough to get a good sense of what is happening inside north korea. it's arguably the most secretive nation on the planet. an associated press reporter gave some perspective. he is thought to be the only independent foreign journalist inside pyongyang. >> all over the city you can see separate kind of mourning events like here outside one major meeting hall, hundreds of people are lining up to go stand in front of the portrait of the deceased general kim jong il and crying and wailing for a few minutes before he they are moved along so that the next group can come up. this kind of thing is going on all over the city. >> shepard: the mourners came to the supermarket escalator where kim jong il was last photographed. you can see the people wailing. it's not clear to i us whether any of this was staged by the notorious regime. some welcomed the news of kim's death. others admitted having angs sight about what the future holds. greg palkot spoke to people in seoul. >> today is the first day that the newspapers gave it, well, front page treatment. they were thinking and talking a lot about it what it means for south korea, what it means for north korea for the entire korean peninsula. >> it's a bad thing in my opinion. >> why? >> well, basically, you know, we don't think that the kim jong un is ready to take over north korea at this point. >> we don't know yet but everybody worried about he is too young. >> worried is he too young? >> no experience. >> shepard: experience. not what anybody wants on the resume of a dictator who controls nukes. "the fox report's" chief correspondent jonathan hunt is in the studio tonight. the question some people around the world are asking if this kim the younger kim john un can't control things or run the place who can? >> well, shep, first of all, he is going to be dependent on a group of powerful generals within the north korean military which has taken more and more power over the last few years under kim jong il. and then a couple of very powerful individuals. one of those is kim jong il's sister. take a look at at this issue 'of her. the woman in the middle of the front row. very powerful. along with her is her husband jang song tek. those two may be the real power brokers in the real north korea, listen. >> both of them have ranking positions and different party and defense organizations. so, these are clearly very important figures in kim jong il's immediate circle who presumably now will transfer their loyalty and place their bets on this young and inexperienced person. >> young, inexperienced possibly easy to membership, possibly with his finger on the nuclear trigger. dangerous cocktail, shep. >> i will say. anybody hoping for some sort of radical change is probably going to be severely disappointed? >> there is unlikely to be north korean spring like the arab spring we have seen this year. there is that school of thought because kim jong un was schooled for a while in switzerland, has a liking for western sports and western movies. he might open up north korea a little bit. experts point out his father kim jong il was exactly the same like basketball, like hollywood movies. they say there is very little likelihood north korea is going to change at all if anything his exposure to the western world might make him more keen to keep a grip to keep the people from knowing what that western world is like, shep. >> shepard: jonathan, thanks. there is little doubt the dear leader was a cruel man, but there is no denying that he was very good at looking at things. to wit: here is kim jong il looking at inflatable dolls and some cheese wheels. earlier today on "studio b," we spoke with johnny rocha on the phone. he is the founder of the poplar blog kim jong il looking at things. a catalog of some of the late leader's bizarre photo op.s. >> started about a little close to a year ago. i was watching an image gallery of kim jong il on the "boston globe." and it was such a series of surreal images. him, it was like a mini version of the blog. him looking at things with the same coats, the same glasses, the same hat. i just couldn't believe that this is what passed at propaganda in north korea and i thought it deserved a blog of its own. >> shepard: he got it he will keep it going until his stash of kim jong il pics runs out. newt gingrich showing signs of real trouble in the latest poll. coming up, a look at how ron paul is affecting this race and what would happen should he decide to run as an independent g.o.p.? you will find this interesting. political inside his or her predicts congressman ron paul will win the iowa caucuses. also the ohio state was looking to start over after a scandal the school picked a new coach and folks were looking forward to leaving the program's troubles behind. shouldn't do that. details of a big smackdown for the buckeyes from the journalists of fox news. on this tuesday fox report. if you have high blood pressure, like me, and get a cold... ...you need a cold medicine with a heart. only coricidin hbp has a heart, right here. it's the only cold and flu brand that won't raise your blood pressure. coricidin hbp. powerful cold medicine with a heart. sure. cake or pie? pie. apple or cherry? cherry. oil or cream? oil or cream? cream. reddi-wip us real dairy crm. nothing's more real than reddi-wip. let's do it, let's go to vegas. vegas baby! maybe we should head back to the dealership first? vegas! no, this is a test drive. vegas! [ male announcer ] it's practically yours. but we still need your signature. volkswagen sign then drive is back. and it's never been easier to get a jetta. that's the power of german engineering. get zero first month's payment, zero down, zero security deposit and zero due at signing on any new volkswagen. visit vwdealer.com. forty years ago, he wasn't worried about retirement. he'd yet to hear of mutual funds, iras, or annuities. back then, he had something more important to do. he wasn't focused on his future but fortunately, somebody else was. at usaa we provide retirement solutions for our military, veterans and their families. from investments... to life insurance... to health care options. learn more with our free usaa retirement guide. call 877-242-usaa. >> shepard: fox news is america's election headquarters. the voting kicks off two weeks from today at the iowa caucuses there is a new poll out that shows ron paul is the new frontrunner. check it out. insider survey has ron paul leading mitt romney by 6 points. gingrich is way down in fourth place. today on "studio b" a respected guru told me that he thinks congressman paul will win in iowa. here is ed rollins the former campaign manager for michele bachmann and mike huckabee. >> he has been running nonstop for six years. is he probably going to win the caucus or certainly come in second. >> shepard: you think he is really going to win iowa. >> i think he is easily win iowa. >> you think he will you said. >> i think he will. >> shepard: look what happens if ron paul wins iowa and not the nomination and makes the decision to run as a third party candidate? >> president obama easily beats mitt romney. take congressman paul out of the mix, it's a dead heat according to a "the washington post" abc news poll. congressman paul happens to be in new hampshire today which votes a week after iowans james rosen is in d.c. what is newt gingrich trying to halt this slide in the polls? >> shep, he spent the day care vanning through iowa hitting four cities in the hockey state. a woman rebuked the former house speaker for being, quote, presumptuous when he told an interviewer he will be the nominee. gingrich agreed, called it a mistake. >> every once in a while a reporter will ask me an analytical question. i'm not an analyst. i have made mistakes. when i make mistakes i will say to you that was a boo boo. >> gingrich also challenged mitt romney to get his super pac friends to stop running attack ads. romney said he is not legally allowed to coordinate the super pac, shep. >> shepard: rick perry is back in the news again. he got a big boost from a fellow governor and support that he might not have anticipated. >> rick perry says he is the only non-washington figure left in the race. today he brought another non-washington governor. bobby jindal of louisiana. his fellow republic to multiple stops in iowa. at one point he said his tax plan would eliminate a certain deduction and it was governor jindal who reminded perry that that is still in the plan. >> thank you for correcting me on that, governor. not that i ever make a mistake. >> or a boo boo. he told politico his favorite beer is shiner and he carries concealed firearm. shep? >> shepard: important endorsement, i guess, somewhat qualified for santorum today? >> that's right. form are pennsylvania senator rick santorum has hit more nics and crannies in iowa than any other candidate. today that appeared to pay off. former senator who was the staunchest critic of gay marriage in the race was rewarded with president and ceo family leader group. the group's board remained neutral. unclear whether the ground game will benefit from, this shep. >> shepard: james rosen in d.c. tonight. thanks very much. u.s. officials say they are worried that new bird flu research could become a blueprint for bioterrorism. and for what could be the first time our government is asking our scientists to keep the findings to themselves. health officials have long feared a global outbreak of the deadly bird flu virus. in its current form, humans rarely contract it and it also doesn't easily spread from one person to another. now scientists in both the united states and yiewmp say they figured out how to make the virus more contagious and that's potentially capable of infecting millions of people. they say they have even produced a lethal super strain in labs to help them fight any future pandemic. but u.s. government biosecurity experts are asking those scientists and the editors of scientific journals not to publish all the details of their experiments. it's clear why. they say the research could help control the spread of the disease but it could also help terrorists build biological weapons. the start of winter but two days away don't tell that to these folks. where this blizzard is headed next and who could be seeing a white christmas. plus, a deadly wreck bringing the morning commute to a stand still. this was no car crash. that's a plane and two of the victims are children. hear what the pilot radioed before falling from the sky. ♪ [ woman ] ♪ what i want this season ♪ if you'd like to try and guess ♪ ♪ it is something very special ♪ i would readily confess [ dogs barking ] ♪ 'cause all i want this season ♪ ♪ is something from your heart ♪ la da da, la da da [ male announcer ] thinking of others this holiday season, travelers. i'm a wife, i'm a mom... and chantix worked for me. it's a medication i could take and still smoke, while it built up in my system. 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[ laughs ] [ male announcer ] ask your doctor if chantix is right for you. shep the buckeyes are on probation. the ncaa today announced a one year bowl game ban and more for ohio state university's football program. it's punishment for a string of violations on the former head coach jim tressel. he stepped down in may after investigators found his players gave football memorabilia and awards in exchange for cash and dispownted tattoos among other violations. today's ncaa ruling means the buckeyes are ineligible to compete in the big 10 championship game or any bowl game after the 2012 regular season under the new coach urban meyer. the program is on probation for three years and loses three scholarships in each of the next three seasons. a fox extreme weather alert powerful and deadly blizzard plowing through a wide stretch of the nation. officials are blaming it for at least six deaths. that storm stretches from the plains to the rockies with wind gusts reaching 50 miles per hour. we're hearing parts of new mexico and kansas saw more than a foot of snow. reports of 10-foot drifts in parts of colorado. authorities have had to close several interstate sections, stranding lots of families, hoping to get a head start on the holidays. our chief meteorologist rick reichmuth is in the middle of all the mess in the oklahoma panhandle. >> it's been such a year of extreme weather across the country. few places really know that as much as they do across the panhandle of oklahoma. earlier today we talked with ivan clark. he talked about just how dry this area has been. >> moisture wise this is just such a blessing. we have been such a terrible drought in the last year, 18 months. we had, in fact, just last april 3rd we had a devastating fire that came right into our southwest corner of the town. we lost two or three homes. >> this summer, shepard, they had wildfires that almost tore through this town. they have lost houses in this community and now they get this, very heavy snow and a very wet snow. so while you think they might not like to see this kind of blizzard certainly makes things rough for a couple of days. the folks right here in diamond, oklahoma in this part of the country are very happy to get this kind of snow. >> shepard: the blizzard is not over yet. janice dean is in the extreme weather center tonight. >> the worst of it is over thankfully, shepard. still seeing a few snowflakes here and there, northeastern kansas into missouri. not the storm we saw this time last night, shepard. we are seeing the potential for severe weather that continues over the gulf coast region as that trailing cold front moves east and just a little bit of messy weather across portions of new jersey up towards new york and parts of philadelphia. future radar shows that system exiting and then we're going to watch something develop across the southeast and another storm system across the northern rockies which could come together and make something kind of interesting in the next couple of days white christmas in parts of the northeast. iran could be months away from having atomic bomb. that's the word from our defense secretary. we're live from the pentagon with the details on that. plus a wild car chase with a little girl caught in the middle. we'll show you how it ended as we approach the bottom of the hour and top of the news on fox report. for a hot dog cart. my mother said, "well, maybe we ought to buy this hot dog cart and set it up someplace." so my parents went to bank of america. they met with the branch manager and they said, "look, we've got this little hot dog cart, and it's on a really good corner. let's see if we can buy the property." and the branch manager said, "all right, i will take a chance with the two of you." and we've been loyal to bank of america for the last 71 years. [ knock on door ] coo you found it. wow. nice place. ye. [ chuckles ] the family thinks i'm out shipping these. smooth move. you used priority mail flat rate boxes. if it fits, it ships for a low, flat rate. paid for postagenline and arranged a free pickup. and i'm gonna track them online, too. nice. between those boxes and this place, i'm totally stayinsane this year. do i smell snickerdoodles? maybe. [ timer dings ] got to go. priority mail fla rate shipping at usps.com. a simpler way to ship. >> shepard: a small crashes in the morning rush in the middle of new york city's areas biz yes highways. all five people on board dead including two kids. witnesses on the ground near new jersey say they spotted the single engine craft spiraling out of control right before the plane slammed into the median and exploded. one piece ended up in a tree a quarter mile from the crash site. and a new york city investment bank released a statement saying these are two of the victims. the firm's managing directors. this man described as an experienced pilot whose passion was flying. company officials say they believe his wife, two young children and a dog also died in the crash. ntsb radioed before the plane dropped out of the sky. engine revving long and then the crash. no official word on the cause of the crash. an american quightsed of a south american rebel group back in the united states for the first time in more than a decade. that tops our news across america. new jersey. lori baronson now back with her family after serving a 15 year jail service on peru on an accomplice to terrorism conviction. today she reunited with her mom at newark international airport and another first for the family. they will finally meet her2-year-old son. >> my husband and i and my other daughter have not seen my grandson. so, i think more than everybody being excited about seeing lori, everybody is excited about meeting salvador. >> shepard: she has been on parole since last year, a peruvian court has ordered to return there by january 11th. texas. after 25 years in prison for a crime he did not commit, this man is free. d.n.a. evidence has cleared him of murder and linked another man to his wife's bludgeoning death. he says he won't soon forget the emotional torture the wrongful conviction caused. >> wife's brains splattered all over the bedroom [inaudible] >> he says he now wants to rebuild his relationship with his son. arkansas. hundreds of folks lined up in fort smith to get their teeth pulled for free. part of an annual event to help those who can't afford dental care. the limit one tooth per person which saves patients as much as 700 bucks. sweet relief just in time for the holidays. and that's a fox watch across america. i'm shepard smith. this is "the fox report." it's the bottom of the hour, time for the top of the news. 11 days to go before taxes go up for millions of americans. and the white house is updating its countdown clock to put all the pressure on the house republicans. they just rejected a senate bill to extend the payroll tax cut without even bringing it in for an upor down vote. the president says that's the only option to spare the average american family a tax hike of about a thousand bucks. ed henry is live for us at the white house tonight. the president is demanding action on this standoff, yes? >> that's right, shep. his aides say that basically the only reason why speaker boehner did not bring up that senate bill today for a vote in the house is that republics feared it would actually pass with a combination of republics and democrats. so that's why it has been blocked. the president was at a ceremony today at andrews air force base welcoming home troops from iraq. when he came back from that ceremony he made a surprise appearance here at the white house daily briefing with jay carney, interrupted him and took over the podium and basically said that john boehner and republicans in the house need to show the same kind of country first attitude that we have seen from our troops in iraq. take a listen. >> when they fight together and sometimes die together they don't know and they certainly don't care who is a democrat and who is a republic and how somebody is doing in the polls and how this might play in the spin room. they work as a team. and they do their job. and they do it for something bigger than themselves. >> house republicans are responding by saying it's time for senate democrats to come back into session. work out their differences on this issue. with the house republics. no sign of that from the senate democrats. house republicans also digging in by saying look, have you got to add certainty to the economy by having a one-year extension of the payroll tax cut. not just two months, shep. >> shepard: the president mentioned the polls, ed. it would appear those polls indicate he he has the american people on his side on this one. >> yeah. maybe for the first time in this whole debate where the president has largely been on the defensive saying pass this bill now hasn't had a lot of success there all of a sudden there is a "the washington post" abc news poll that says on the issue of taxes, which is -- something republicans always win on the president is up 46% to 41%. and then when independents were asked that very same question, the president was up over republicans by 17 points. much more. this is an issue republicans normally clean up on. but it appears that the president has now put republicans on the defensive. that's why see have seen john mccain say this is a losing battle for republicans. the white house when you talked to officials privately they are banking on more prominent republicans stepping up saying the same thing as john mccain and pressuring him to give up. >> shepard: ed henry on the north lawn. thanks. the economy now. the stock market is having its best day of the month. look at this. the dow jumped 337 points and pushed the index above 12,000. nasdaq way up as well. closed 81 points higher. the s&p 500 ended up 36. analysts say encouraging signs from europe fueled today's surge along with a surprisingly strong report on the u.s. housing market. new construction up to its highest level since april of last year. apartment and town house construction leading the way. the secretary of defense taking a stand on iran. leon panetta now saying the united states will not allow the iranians to develop a nuclear weapon. it's not clear to us exactly how close iranian scientists may be to the technology but he tells cbs news it's possible they could have a bomb in a matter of months. jennifer griffin works the pentagon for us. she is live for us tonight. what exactly did the pentagon have to say on this matter? >> he was asked what the u.s. estimate was in terms of how long before iran could get a bomb. this is what he said, quote. it would probably be sometime around a year that they would be able to do it, perhaps a little less. if they proceed and we get intelligence that they're proceeding with developing a nuclear weapon, then we will take whatever steps are necessary to stop it he added the u.s. had no evidence that the iranian leadership had ordered the scientists to move forward on this -- on obtaining a bomb. >> you traveled with secretary panetta through the middle east and this was one of the topics of discussion. what did he tell you. >> it was. what was also interesting when i spoke to him in kabul, afghanistan, he he emphasized that u.s. spying campaign over iran in the wake of that down ited drone would continue. all of this suggesting that the u.s. is keeping a very close watch on those nuclear sites and when president harmid karzai was asked whether he would ask the u.s. to stop those drone spying flights he wouldn't answer. jennifer griffin at the pentagon tonight. thank you. hundreds of women marching in egypt today against what they call the military's use of excessive use against protesters. shouting] flnk. >> shepard: a number of critics around the world now blasting egypt's ruling military for its treatment of unarmed demonstrators including women. five days of clashes have killed at least 14 people according to reports. as egyptian troops used guns and tear gas and batons to try to break up the protest there are other reports that soldiers have dragged women by the hair and even stripped one half naked in the street. the military council issuing apology to what it calls the great women of egypt, affirming their right to protest and vowing to punish those responsible. well, tense moments in the tabloid phone hacking scandal as a cnn host and a former u.k. newspaper editor testified before a british committee today. the hacking scandal began when investigators say staffers at the news of the world newspaper broke into the voice mail accounts of people they were covering. news corporation, which is the parent company of fox news channel later closed that newspaper. but it led to a broader inquiry into media ethics. pierce morgan testified before lawmakers. he used to run the news of the world himself as well as a rival paper the daily mirror. today, investigators asked pierce morgan about a question that paul mccartney left on the answering machine to his wife heather mills in 2001. the message highly personal heather mills saying the only way somebody could have gotten it was by hacking her phone. piers morgan admitted he heard the recording but denies he broke the law. >> you have listened to recordings which you knew to be illegally obtained voice mail messages. >> i do not believe so, no. you either did or didn't it's not a question of belief. >> no. i do not believe so. >> are you listened to recordings of what you have knew to be illegally obtained voice mail messages. >> i do not believe so. >> shepard: morgan refused to say who played the voice mail for him. insisting it would mean compromising a source. big news on the cell phone front. a major carrier hanging up its plans to buy a competitor. that could effect millions of people plus score one for apple in its fight against android. ahead, what all of this means for consumers. plus, did you catch this? not one but two big blackouts leaving monday night football fans in the dark. and police searching for a missing 20-month-old toddler paying her father a visit. and the evidence collection team leaving with something very big. that's all ahead as fox reports live tonight. everyone believes in keeping their omises once a year. but we believe in helping people take steps to keep them every single day. that's why every day we help people across the country get into their first homes. prepare for a comfortable retirement and protect the people and things that matter most. at genworth we believe every day is the right day to take a step toward tomorrow. insurance ... but afraid you can't afford it? well, look how much insurance many people can get through selectquote for less than a dollar a day. selectquote found, rich, 37, a $500,000 policy for under $18 a month. even though dave, 43, takes meds to control his blood pressure, selectquote got him a $500,000 policy for under $28 a month. ellen, 47, got a $250,000 policy for under $20 a month. all it takes is a phone call. your personal selectquote agent will answer all your questions ... and impartially shop the highly rated term life companies selectquote represents for your best rates. give your family the security it needs at a price you can afford. call this number or go to selectquote dot com. selectquote. we shop. you save. >> shepard: cops outside portland maine are following up on 100 leads on the disappearance of the 20-month-old girl. the father claims he last saw her daughter on friday night when he put her to bed. when he woke up the next day the toddler was gone. the girl's parents are separated. the mother told abc news she filed for custody of the daughter the day before she disappeared. and that she is not sure whether the girl's father even knew about her plan. well, today police seized the father's suv and lower dollars the level of a stream near the father's home. that father told police that his daughter has a soft cast on her broken left arm and that she was last seen wearing green pajamas with polka dots. so far cops say they have made no arrest. in southern california, a little girl is safe and sound thankfully tonight after police say her dad snatched her and took her on a child chase through the streets. >> coming at us now. >> cops say the father grabbed the girl from her mom's home in los angeles at about 10:00 at night. she called the cops and the chase began. the suspect drove erratically at one point backing up toward police cars before hitting the gas and taking off. cops say they used a spike strip to slow him down and he eventually pulled over. >> he had the door open and hopefully he will be surrendering peacefully to the l.a.p.d. >> shepard: but he wasn't ready to give up minutes ticked by as he had stood there with his daughter. cops saw the chance as he sat down with the child on his lap. officers swarmed him, grabbed the girl and put dad down on the pavement. police say the child is okay. she wore a big smile for reporters. >> what is your name? [inaudible] >> >> as for dad, he didn't have any clear answers about why he did this. >> did you kidnap your kid? [inaudible] >> shepard: sounds to us like he said that's my daughter. the l.a.p.d. reports to us they booked the suspect on suspicion of child abduction. did you see what happened last night at candle stick park in san francisco? lights went out and nobody seems to know exactly why. monday night football, the 49ers and the steelers. just before kickoff ift power pretty much went out in the entire stadium. look at that the stands, the locker rooms, everywhere, it happened not once but twice. the game continued. the 9ers won. earlier today pacific gas and electric blamed the city. but now the utility spokesman has backtracked saying they are actually not sure what happened. big business news. at&t giving up bid to buy t mobile. the real loser is the customer. justice contempt regulators challenged the prey posed 39 billion-dollar deal reportedly because it would have reduced competition and hurt consumers. at&t officials say they needed the merger to expand their network and increase coverage for folks in rural areas and congested cities like new york. anyone who has used an iphone in midtown manhattan can tell us those upgrades cannot come soon enough. the fox business network's peter barnes is live in d.c. tonight. exactly why did this deal fall through? >> the companies disconnected because of that strong opposition from the justice department and the fec. they agreed with some consumer groups that said allowing the merger of the second and fourth largest wireless companies would reduce competition, raise prices and limit services. but critics said blocking the deal will be the worst for customers. it will be higher prices and actually less competition because you won't have at&t coming in with a new part of its network more efficient forcing prices to go down and verizon, sprint, the nextel system. backing out of the deal at&t will now have to pay team mobile a breakup fee of $4 billion. and at&t, of course, will have to find new ways to improve its network. shep? >> shepard: nice chunk. apple is celebrating a big victory today that has to do with the iphone, et cetera. >> that's right. the international trade commission has ruled in favor of apple in a patent dispute with a smart phone company in taiwan named htc. apple had charged that htc stole some of its technology and htc by the way uses the competing google android software for its smart phones. now the agency has banned imports of some htc smart phones starting in april. speaking of senator phones reuters reporting tonight research in motion which makes blackberries has turned down takeover overtures from amazon.com because rim wants to try to fix its problems on its own. >> shepard: overdue. peter barnes for us tonight. thanks. the cosmetics company proctor and gamble has pulled mascara ad taylor swift. it touched up the photo. here is a print ad in question. there is even some fine print there that says "lashes enhanced." of course that didn't stop an industry watchdog group to pressure proctor and gamble from running it cracking down on this sort of thing. this last summer they banned u.k. ads featuring julia roberts and model because of photo shopping. >> shepard: one mayor says illegal immigrants deserve the right to vote. he is not the only one. details ahead. attention k-mart holiday shoppers. you may want to put those gift purchases on layaway. the latest on a mysterious strain of seasonal generosity. as fox report continues tonight. the droid razr by motorola. the newest droid armed with motocast. granting you wireless access to files on your home computer from almost anywhere. 4g lte equipped to pull pictures, music, and movies. all at mind-melting speeds. powered by verizon, this droid is too powerful to fall into the wrong hands. >> shepard: here is a proposal from a mayor in connecticut let illegal immigrants vote. the city is new haven where the mayor says he will ask the state legislature to consider his plan saying, and i quote. if you live here, you pay taxes here and you send your kids to school here, you should be able to vote. the new rules would let only undocumented immigrants vote in local races. state and national elections would still be off limits. several cities in maryland let noncitizens vote and san francisco and portland, maine are considering similar proposals. the critics say immigrants who want to vote should become citizens. shannon bream with the news live in our d.c. newsroom this evening. this is stirring up a lot of controversy. >> shepard, a bold move by a mayor that is used to being at the center of controversy. new haven residents should be able to vote regardless of whether they are here in the country illegally. those who say the u.s. constitution doesn't allow what he is proposing are simply wrong. we all remember the same document for a long period of time included women and african-americans for voting. americans had a more expansive view of what it meant belong to a community. that applies to federal elections and federal government is fine to make its own decisions. >> that's a ridiculous comparison. you don't say that people who have broken the law to come to the united states and who have not complied with the extensive requirements to become citizens are somehow the same as african-americans or others who were discriminated against. >> estimates of how many illegal immigrants may be living in new haven range from 10 to 20,000. last mayoral election fewer than 16,000 votes. you could see how it could impact the outcome. he will have to convince both the state legislature and the governor to go along with his plan. the governor dan maloy says it is not something he is inclined to support although he adds he is keeping an open mind. you may remember the refusal to promote white firefighters who scored higher marks than african-americans. that case went all the way to the supreme court and the mayor lost. shep? >> shepard: shannon bream, thank you. former president bill clinton is sitting down with bill o'reilly tonight. they actually recorded the interview a couple of hours ago. i liked it they discussed everything from border policies to the republic presidential race. >> if you had to vote between romney and gingrich if you snuck up to new hampshire because anything can vote in that community. you vote for? >> i'm not going to get in that republic primary. no way you can ask me. i also like huntsman you know and if i voted for him i would be in the 1%. he arguably has the most consistently economic record of anybody running. >> bill: he did very well in utah. no doubt about it when your wife is running against in new hampshire and this must bring back memories for you the press favored obama, correct? >> yes. >> no doubt about it. is the press going to favor barack obama over the republic candidate? >> we will have to wait and see. >> you know the answer is yes. >> well, there is so much more. catch the rest of it on the factor right after the news. 8:00 eastern time and 7:00 in oxford right here in fox news channel. we reported last week about an' apparent secret santa trend stores across the country, reports of anonymous paying off for complete strangers. layaway angels we are calling them and now we are hearing it's starting to spread. >> i have had one customer. she came in and paid on a layaway last week. when i was calling to inform her, she thought i was going to tell her that we had to return her other layaway and i told her it was actually paid off so she started crying right there on the phone. >> shepard: you can imagine. reports of these donations spreading spreading from midwest to california. k-mart is a favorite spot because they have had layaway plans for decades. folks in norway now resorting to extreme measures to get their butter. there is a national shortage of butter and prices are as high as $32 a pound. four sticks for 32 bucks. so how far are they willing to go? 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[ male announcer ] along with support, chantiis proven to help people quit smoking. it reduthe urge to smoke. some people had changes in behavior, thinking orood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reactioto it. if you develop these, stop taking chantix and see your doctor right away as some can be life-threatening. if you have a history of heart orlood vessel problems, tell your doctor if you have new or worse symptoms. get medical help right away if you have symptoms of a heart attack. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. my inspiration for quitting were my sons. they were my little cheering squad. [ laughs ] [ male announcer ] ask your doctor if chantix is right for you. >> shepard: now to the continuing coverage of butter crisis in norway. norwegians have been facing a severe shortage of butter. of course with christmas approaching that could lead to very serious cut backs in cookies and cakes. "the wall street journal," which is owned by the parent company of this network reports people are now taking extreme measures. in fact, some norwegians are reportedly now churning their own butter. if you are interested in learning how to churn butter of your own go ahead and google that happy hanukkah. just a few hours ago, a special lighting ceremony for the national hanukkah menorah near the white house. it's the first night of the 8 day jewish celebration. office of management and budget director jacob lowe was on hand to help with the lighting. before we go, our team's top five things of the day. number 5 tonight heaven looks a lot like new jersey. that from the rocker bon jovi after on line hoax claimed he was dead. online claims it will stream super bowl online for the first time. president obama and the vice president biden today greeting some of the last u.s. troops to leave iraq as they stepped off a plane in maryland. number two, the body of the late north korean dictator kim jong il now on display with people looking at t in the capital of pyongyang. number one, the republic led house has rejected a senate plan to extend the payroll tax cut by two months saying they want a full year extension and asking democratic leaders to return to the negotiating table. that's the gridlock. and fox report's top five. and on this day in 1987, an oil tanker collided with a ferry in the philippines and caused the deadliest known maritime disaster in world history. traveling between two islands ahead of the christmas holiday. it was severely overcrowded. there were reportedly 4,000 people on board. more than twice the legal limit and if that were not enough much of the crew was reportedly drunk. for reasons still unknown, it slammed into the side of an tanker full of oil after a massive explosion each ship quickly sank. only 24 people survived a disaster twice as deadly as the titanic that