Tale of Two Surveys; Neck and Neck; Privacy vs Security; Terror in Turkey; Militarizing the South China Sea; Pope Francis in Mexico; People

SPECIAL-REPORT-WI-01

REPORT-WI-01

Turkey; Militarizing the South China Sea; Pope Francis in Mexico; People

Audition to Sing National Anthem for Major League Baseball Games; Ted Cruz

Leads Other Republican Presidential Candidates in New National Poll; San

Bernardino Shooters iPhone Still not Opened by FBI - Part 1>

Adam Housley, Rich Edson, John Huddy, Jennifer Griffin>

Technology; Terrorism; World Affairs; Military; Pope Francis>

BRET BAIER, FOX NEWS CHIEF POLITICAL ANCHOR: Dueling polls days before the South Carolina primary. One shows Donald Trump increasing his national lead. The other has a new man on top.

This is SPECIAL REPORT. .

Good evening. Welcome to Washington. I'm Bret Baier.

We begin tonight with the tale of two surveys as Republicans ride the bumpy insult-filled road to the South Carolina primary Saturday. Ted Cruz is now leading Donald Trump in one major national poll. In another, Trump is increasing his lead. In South Carolina, the undecideds are still high as the gloves come off.

We lead off tonight with chief political correspondent Carl Cameron in Chapin, South Carolina -- Carl.

(BEGIN VIDEOTAPE)

CARL CAMERON, FOX NEWS CHIEF POLITICAL CORRESPONDENT: Hi -- Bret.

Marco Rubio is about to be endorsed by South Carolina's Governor Nikki Haley. Rubio has been in a really tough battle with Ted Cruz for second place here in the Palmetto State and Cruz has been battling and for the first time is now leading Trump in a national poll. And, boy, is their battle vicious.

(BEGIN VIDEOTAPE)

CAMERON: Ted Cruz today summoned the media for a news conference to taunt Donald Trump.

SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: The bullying is not going to work here.

CAMERON: Cruz is daring the frontrunner to make good on his threat to sue. At issue -- a Cruz ad that uses Trump's own words against him.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I'm very pro-choice.

UNIDENTIFIED MALE: But you would not ban it.

TRUMP: No.

UNIDENTIFIED MALE: Or ban partial-birth abortion.

TRUMP: No. I am pro choice in every respect.

CAMERON: Trump's attorney sent a cease-and-desist order to the Cruz campaign yesterday. Cruz is responding in kind.

CRUZ: Even in the annals of frivolous lawsuits, this takes the cake. So Donald I would encourage you. If you want to file a lawsuit, challenging this ad, claiming it is defamation, file the lawsuit.

CAMERON: Trump in a statement said, quote, "If I want to bring a lawsuit it would be legitimate. Likewise if I want to bring the lawsuit regarding Senator Cruz being a natural-born Canadian, I will do so. Time will tell, Teddy."

Cruz is calling Trump's bluff relishing the chance to depose him under oath.

CRUZ: I'll point out it didn't work out very well for Bill Clinton. Donald Trump does not want to be under oath answering questions about his own record.

CAMERON: The latest South Carolina polls show Trump with a commanding lead and Cruz and Rubio locked in a virtual tie for second. John Kasich and Jeb Bush are running out of time in the first Southern primary.

JEB BUSH (R), PRESIDENTIAL CANDIDATE: He's an actor playing a candidate in effect. He doesn't believe what he says. There is nothing in his past that would suggest he is a conservative. And now he's morphed into this person that is kind of shifting with the winds.

CAMERON: Nationally polls say the race is more volatile than ever. Trump has his biggest lead yet in a new Quinnipiac poll. And in a Wall Street Journal/NBC News poll Cruz has taken over the lead with 28 percent over Trump's 26 percent; Marco Rubio is at 17 percent; John Kasich at 11 percent; Carson, 10 percent; and Jeb Bush 4 percent.

Rubio's aggressively attacking Cruz in hopes of overtaking him.

MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: I've been saying for a while now that Ted unfortunately has proven that he's willing to say or do anything to get elected.

CRUZ: Whenever anyone points to their actual record, the response of both Donald Trump and Marco Rubio is to yell the word "liar".

TRUMP: They really -- I mean they lie. The reason I can say that nicely is that Rubio called him a liar also.

(END VIDEOTAPE)

CAMERON: And Haley's endorsement of Marco Rubio is a big get tonight. It comes three days before the first-in-the-south primary and all the polls suggest that at least a third of the Republican electorate here may still change their minds -- Bret.

BAIER: Carl Cameron in South Carolina. Carl -- thank you.

By the way, a new Fox News poll comes out in South Carolina tomorrow morning. You want to tune in for that.

The Quinnipiac poll reinforces the notion that Bernie Sanders has virtually erased Hillary Clinton's huge national lead. Chief White House correspondent Ed Henry looks at the numbers and what they mean from Las Vegas.

(BEGIN VIDEOTAPE)

ED HENRY, FOX NEWS CHIEF WHITE HOUSE CORRESPONDENT: For the second straight time the Quinnipiac poll shows Hillary Clinton is now in a dead heat nationally with Bernie Sanders.

NINA TURNER, FORMER OHIO STATE SENATOR: You are nobody's fire wall.

HENRY: Sanders had a huge rally last night of nearly 5,000 people at Morehouse, the historically black college in Atlanta where Nina Turner, a former Ohio State senator who split from Clinton to Sanders declared to fellow African-Americans --

TURNER: We built this country. The sweat and the tears of black folks built this country. And we are nobody's fire wall. You've got to earn our vote. You don't own our vote.

HENRY: According to a new CNN/ORC poll, Clinton still has a big double- digit lead in South Carolina where Democrats vote February 27th, though she first has to get through Nevada this Saturday and the same poll shows a dead heat here with Clinton only leading Sanders by one point.

With the race tightening, Clinton spokesman Brian Fallon last week tried to downplay expectations in Nevada by saying, quote, "It is still a state that is 80 percent white voters."

That angered Nevada's senior senator, the Democratic leader Harry Reid who secured the states first-in-the-west caucus by touting that Hispanic vote brings more diversity than other early states.

Are you disappointed that the Clinton campaign in recent days is saying this is not a diverse state and that it resembles Iowa, they say?

SEN. HARRY REID (D-NV), MINORITY LEADER: Of course the Clinton campaign didn't say this. One person said Brian Fallon.

HENRY: He's the spokesman.

REID: Of course, he change real quickly after I called him -- ok.

HENRY: Clinton does have Virginia Senator Tim Kaine, who speaks fluent Spanish, working Hispanic neighborhoods here trying to make her case.

SEN. TIM KAINE (D), VIRGINIA: It is head and shoulders, night and day different in terms of Hillary being the most qualified person to be a fantastic next president of this country.

HENRY: Yet the campaign continues to have to clean up after former President Bill Clinton who yesterday falsely claimed in South Carolina, quote, "The people that perpetrated that travesty in San Bernardino had never been to the Middle East. They were converted over the social media." In fact, one of the terrorists was born in Pakistan and spent most of her life in Saudi Arabia while the other made several trips there.

(END VIDEOTAPE)

HENRY: Meanwhile, Harry Reid told us he is not planning to endorse anyone ahead of Saturday's big caucus. And just a few moments ago, we learned the AFL-CIO says they will not endorse Clinton or Sanders. Those are two major establishment endorsements Clinton wanted to have. It shows key parts of very senior parts of the Democratic Party, not sold yet -- Bret.

BAIER: Ed Henry, live in Las Vegas. Ed -- thank you.

So who do you think will win Saturday's Democratic caucuses in Nevada? Let me know at facebook.com/BretBaierSR or on Twitter @BretBaier, you can use the #SpecialReport.

Privacy or national security? That is the question tonight for one of the world's biggest and most profitable corporations as it deals with federal agents in the wake of a deadly terror attack.

Senior correspondent Adam Housley has the details from Los Angeles.

(BEGIN VIDEOTAPE)

ADAM HOUSLEY, FOX NEWS SENIOR CORRESPONDENT: A showdown between Apple and the feds has gone public. Apple's CEO Tim Cook says he will fight a court order to help unlock one of the San Bernardino terrorists' phones saying, quote, "While we believe the FBI's intentions are good, it would be wrong for the government to force us to build a back door into our products. Ultimately, we fear that this demand would undermine the very freedoms and liberty our government is meant to protect."

Found in the front seat of a Lexus used by Syed Farook, the phone in question is key to the investigation.

JAMES COMEY, FBI DIRECTOR: We still have one of those killer's phones that we have not been able to open. It has been over two months now, we're still working on it.

HOUSLEY: The FBI has been unable to unlock the iPhone 5c and a federal judge has ordered Apple to provide reasonable technical assistance to help crack. At issue: disabling a security feature that erases date from the iPhone after too many attempts to unlock it.

Agents tell Fox, without this, they are unable to, quote, "connect the dots" they believe will likely lead to people who helped Farook and his wife Tashfeen Malik carry out the December terror attack in San Bernardino that killed 14 and wounded 22 others.

ERIC SCHIFFER, CYBER SECURITY EXPERT: They need access and frankly, Apple is stopping that access and they're going to have the have the blood of dead Americans on their hands. It is wrong. We're at war. We need this information. Who are they to say that we can't get it?

HOUSLEY: The White House says this is a one-time request. Something Apple says is just not possible.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: They are not asking Apple to redesign its product or to create a new back door to one of their products. They're simply asking for something that would have an impact on this one device.

(END VIDEOTAPE)

HOUSLEY: The Verizon iPhone was given to Farook by the county of San Bernardino as part of his job. Agents say the phone company can only provide basic information and not enough to help the ongoing terror investigation. Apple has five business days to formally respond to the ruling.

And the DOJ has given us a statement late tonight Bret that says in part that the judge's order and our request in this case do not require Apple to redesign its products, to disable encryption or to open content on the phone. In addition, the judge's order and our requests were narrowly- tailored to this particular phone -- Bret.

BAIER: Adam Housley in Los Angeles. Adam -- thank you. More on this with the panel.

The Presidential candidates are talking about the Apple case. Here's what some of them are saying.

(BEGIN VIDEO CLIP)

SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: We have a history in this country of working collaboratively with the private sector. And as president I will seek to do that to figure out a solution to the problem of encryption that protects Americans' privacy but still allow this access to valuable information that could prevent future attacks.

GOV. JOHN KASICH (R-OH), PRESIDENTIAL CANDIDATE: I don't think it is an example of government overreach to say that, you know, we had terrorists here on our soil and we have to understand more detail about who they may have been communicating with.

This all gets down to the issue of encryption -- the back door access. And if one group gets the back door access, does another group get a back door access?

TRUMP: I agree 100 percent with the courts. In that case we should open it up. The people that killed 14 people, other people laying desperately ill in a hospital from what they did. These are two people radicalized who were given a wedding party by the people that they killed. There is something going on.

We have to be very careful. We have to be very vigilant. But to think that Apple won't allow to us get into her cell phone, who do they think they are?

(END VIDEO CLIP)

BAIER: President Obama says boosting cyber security will require long term vigilance and overhauling systems currently in place.

Correspondent Rich Edson is at the White House tonight to tell us what the President's doing about it. Good evening -- Rich.

RICH EDSON, FOX NEWS CORRESPONDENT: Hi. Good evening -- Bret.

And the Obama administration's answer to a vulnerable cyber security network, an additional $5 billion of spending next year on security and the creation of a new commission -- the Commission on Enhancing National Cyber Security.

Just this afternoon, President Obama has named his former national security adviser, Tom Donilon to chair that commission. The President has named former IBM executive Sam Palmisano as his vice chair. The White House says the commission will devise recommendations for the federal government to implement over the next decade to enhance its cyber security. In doing so, the President acknowledges successful require and overhaul of much of the current security system.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We are not as well organized as we need to be to make sure that we're dealing with all these threats in an effective way. We've made some enormous progress since I came into office, chipping away at the problem, trying to upgrade certain systems, trying to patch over certain security vulnerabilities.

(END VIDEO CLIP)

EDSON: The White House says the commission will present its findings to the President by the end of this year. In just the past year hackers have stolen 22 million government personnel files, infiltrated the Department of State and accessed other government files.

A recent Government Accountability Office report said the Department of Homeland Security's cyber protection system partially, not fully, meets its objectives. One cyber security expert tells Fox that one of the problems with this commission might be that the next president may not listen to its recommendations -- Bret.

BAIER: Rich Edson, live on the North Lawn. Rich -- thank you.

Up next, the terror attack in Turkey, not far from the U.S. Embassy -- we'll show you.

First, here's what some of our Fox affiliates around the country are covering tonight.

Fox 28 in Columbus, as a committee in the Ohio House approves a bill to ensure public school students who want to express their religious viewpoints get the same access to school facilities as secular students. The measure also removes a provision that allows the school district to limit the exercise of religion to lunch period or other non-instructional times.

Fox 2 in Detroit where customs officials have seized almost $5 million in counterfeit U.S. currency from a Vietnamese couple. The two arrived in Detroit on a flight from South Korea. They say they were going to use the money as burnt offerings to the deceased, a common practice in certain Asian cultures.

And this is a live look from Chicago from Fox 32. The big story there tonight, protests by parents in support of Chicago public school teachers. Their union was promoting the so-called walk-ins just days after the district slashed $85 million from its $1.1 billion budget.

That's tonight's live look outside the Beltway from SPECIAL REPORT. We'll be right back.

(COMMERCIAL BREAK)

BAIER: A terrorist car bomb killed 28 people and wounded dozens more today in the Turkish capital of Ankara. It was targeting members of Turkey's military.

Correspondent John Huddy has the story from our Middle East newsroom.

(BEGIN VIDEOTAPE)

JOHN HUDDY, FOX NEWS CORRESPONDENT: Chaos in Ankara after a car bomb explodes at a busy intersection during rush hour in Turkey's capital city. Turkish officials say the target was a military convoy. Several vehicles were reportedly hit as they waited at a traffic light.

U.S. State department officials say the explosion was about a half mile from the U.S. embassy where a duck-and-cover order was issued.

MARK TONER, STATE DEPARTMENT DEPUTY SPOKESPERSON: The embassy is working to determine if any U.S. citizens were involved. And we're standing by to provide any and all consular assistance. The U.S. embassy also issued an emergency message to U.S. citizens urging them to avoid the area and to monitor local news.

HUDDY: Turkey's President Recep Erdogan said his country will fight those who carried out the attack and the quote, "forces behind them". No one has claimed responsibility yet but Kurdish rebels and Islamic militants have launched deadly attacks in Ankara and other parts of Turkey before.

Turkey's military continues to battle Kurdish rebels in the south eastern part of country and also in Syria, along with ISIS militants. Washington though is urging Turkey to hold its fire on Kurdish forces, in order to allow a pause in Syria's civil war to take effect.

TONER: We've expressed our views. Made it clear that just as the YPG, as I said, its actions are very counter productive but we've also conveyed to the Turkish government that it should cease its artillery fire across the border.

(END VIDEOTAPE)

HUDDY: So far at least 28 people were killed, 61 injured. And Turkish officials say that those numbers could certainly continue to rise as we've seen in the past -- Bret. Back to you.

BAIER: John Huddy in our Middle East news room. John -- thank you.

The U.S. is flexing one of its strongest military muscles over the Korean peninsula. Four F-22 Raptors flew into an airbase near Seoul as a show of force to North Korean leader Kim Jung-On. Kim has defied the U.S. and the West by launching a long range rocket and conducting an underground nuclear test within the last several weeks.

President Obama's top diplomat is expressing official concern over the story we broke last night about China's deployment of anti-aircraft weapons on a disputed South China Sea island.

National security correspondent Jennifer Griffin is watching developments tonight from the Pentagon.

(BEGIN VIDEOTAPE)

JENNIFER GRIFFIN, FOX NEWS NATIONAL SECURITY CORRESPONDENT: A war of words between the U.S. and China after satellite images revealed China secretly placed anti-aircraft missile batteries on a contested island in the South China Sea.

JOHN KERRY, U.S. SECRETARY OF STATE: It's of serious concern --

GRIFFIN: Secretary of State John Kerry vowed to raise the issue with Chinese leaders in the coming days.

KERRY: There is every evidence every day that there has been an increase of militarization of one kind or another.

GRIFFIN: The Chinese foreign minister brazenly pushed back.

WANG YI, CHINESE FOREIGN MINISTER (through translator): This is consistent with the right to self-preservation and self-protection China is entitled to under the international law. There should be no question about that.

GRIFFIN: As first reported yesterday by Fox News, these satellite images show Woody Island's beaches empty on February 3rd. But days later on the eve of President Obama's summit in Palm Springs with ten of China's neighbors, China sent these HQ9 missiles which can shoot down military and civilian aircraft from 125 miles away.

News of the Chinese missiles elicited this reaction from the campaign trail.

KASICH: The Chinese had better knock this off. I don't -- this idea of them flexing their muscle is a big mistake on their part. We don't need to make them enemies but they have to stop this.

GRIFFIN: In the past 18th months, China has constructed 3,000 acres of artificial islands atop reefs in the South China Sea. Five years ago it planted the Chinese flag on the ocean floor. Late last month, Kerry visited Beijing and his Chinese counterpart pledged not to militarize the islands also claimed by Vietnam and Taiwan.

Secretary Kerry said at the time the U.S. would not take sides on territorial disputes with China's neighbors. In September, the Chinese president spoke in the Rose Garden of China's intentions in the South China Sea.

XI JINPING, PRESIDENT OF CHINA (through translator): China does not intend to pursue militarization.

(END VIDEOTAPE)

GRIFFIN: Today the head of the U.S. Pacific command, Admiral Harry Harris in Tokyo questioned the Chinese president's sincerity when he promised U.S. leaders not to militarize the Islands -- Bret.

BAIER: Jennifer Griffin at the Pentagon. Jennifer -- thank you.

The State Department says it is confident that Russia carried out air strikes that hit several hospitals and schools this week in northern Syria. Russia has denied it.

(BEGIN VIDEO CLIP)

TONER: There were Russian aircraft that carried it out, these strikes, you know. The Russians have provided or supplied the Syrian air force. But, you know, we're pretty confident in our assessment this was Russia that carried out these strikes.

(END VIDEO CLIP)

BAIER: Also today, Turkey's president is criticizing the U.S. and President Obama for not supporting calls for a no-fly zone in Syria.

As we head to break, a live look now along the U.S.-Mexico border as Pope Francis holds mass there. We will go there live for a report on his trip. Take a listen now as we head to break of that mass.

(COMMERCIAL BREAK)

BAIER: Another report of another massive failure in President Obama's Veterans Affairs Department. An inspector-general says crisis calls to the VA's suicide hotline are often directed to voicemail. It adds that other callers also do not always receive immediate assistance. A VA spokeswoman says the agency is working to upgrade the hot line.

Stocks have had their biggest three-day gain since August of last year. The Dow was up 257 today. The S&P 500 finished ahead 31. The Nasdaq gained 98.

Right now, Pope Francis is about to begin one of the most significant ceremonies of his papacy as you look live there. He is holding mass in Juarez, Mexico within sight of the U.S. border at a time of great controversy over immigration and the violence that has engulfed the region. The service is being shown on giant screens just across the border at a football stadium in El Paso, Texas.

That's where correspondent Casey Stegall is tonight. Hi -- Casey

CASEY STEGALL, FOX NEWS CORRESPONDENT: Bret -- good evening. The crowd here very excited as the Pope makes his way up to the altar. We're moments away from mass beginning in Juarez.

Let's show you the live pictures now coming to us. 220,000 people have gathered at that spot which is not including the 80,000 volunteers who formed a human chain in the streets as the Pontiff have made his way to that location. This is just on the other side of the Texas border with the giant border fence not far from where he will be standing.

The service being broadcast as you said on the jumbotron here at the Sun Bowl Stadium in El Paso to nearly 50,000 faithful. Pope Francis has been traveling around Mexico for the last five days and throughout his journey the Holy Father has condemned the Mexican drug trade and the violence associated with it.

But his message today has been focused on the fair treatment of migrants. The bishop of the El Paso diocese told me, what you're seeing this excitement, he calls the Pope Francis effect -- a pope who has been credited with reenergizing the Catholic faith and bringing people back to the church.

(BEGIN VIDEO CLIP)

BISHOP MARK SEITZ, CATHOLIC DIOCESE OF EL PASO: This pope, speaking their language as a native, understanding their culture from the inside, being an American in the broadest sense of that term certainly brings a whole new level of connection with the leader of the Catholic Church.

(END VIDEO CLIP)

STEGALL: Now, U.S. Customs and Border Protection officials say that the international border crossing absolutely jammed earlier today because an estimated 200,000 pilgrims went over to Mexico for this celebration. You can imagine security in this region extremely tight. More than a dozen state, local and federal law enforcement agencies at work throughout this area, making sure the public is kept safe -- Bret?

BAIER: Casey -- thank you.

The words baseball fans have waited all winter to hear, "pitchers and catchers report," are being spoken tonight. A handful of major league clubs opened their spring training gates today. The rest will soon follow. But he players are not the only people trying out for their jobs. Correspondent Steve Harrigan is in Miami with that story. Hello, Steve.

STEVE HARRIGAN, FOX NEWS CORRESPONDENT: Bret, pitchers and catchers from the Pittsburgh Pirates arrived in Florida this week. But the team is also auditioning singers.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Good morning, everyone.

HARRIGAN: They lined up early for a chance to sing.

(SINGING)

HARRIGAN: The old and the young.

(SINGING)

HARRIGAN: Why are you doing this?

LAUREN TAYLOR-NOCK, NATIONAL ANTHEM SINGER: Because I'm proud of being an American and I really wanted to sing it.

(SINGING)

HARRIGAN: A difficult song to master.

GREG BATES, NATIONAL ANTHEM SINGER: I sing karaoke at the bowling alley and I hope I developed my voice good enough to sing the anthem well.

HARRIGAN: For some contestants, the song has a special meaning, like Korean War veteran Barry Yoder.

BARRY YODER, NATIONAL ANTHEM SINGER: It is not a performance. It is a tribute to the flag.

(SINGING)

HARRIGAN: A tribute that echoes forth from an empty ballpark.

(SINGING)

(END VIDEOTAPE)

HARRIGAN: The Pirates will pick just ten people to sing before spring training games next month. Bret?

BAIER: Play ball. Steve, thanks.

A new national leader on the Republican side, or is the Trump momentum still growing? And the Clinton lead evaporates in latest polling. We'll talk about it all with the panel when we come back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. TED CRUZ, (R) PRESIDENTIAL CANDIDATE: For the first time in many months, there's a new national frontrunner on the Republican side.

(APPLAUSE)

CRUZ: So the sound you're hearing is the sound of screams coming from Washington, D.C.

GOV. NIKKI HALEY, (R) SOUTH CAROLINA: Every day is a great day in South Carolina.

(APPLAUSE)

HALEY: Ladies and gentlemen, if we elect Marco Rubio, every day will be a great day in America.

DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: They come out with a voter violation form, which is a fraud as far as I'm concerned. And what did he with that whole thing is a disgrace. So we're not going to let that stuff happen anymore. We will not let it happen. We're all watching. You're all watching. Keep your eyes wide open.

(END VIDEO CLIP)

BAIER: So the sights and sounds from South Carolina today. The poll that Ted Cruz was referring to is the new NBC "Wall Street Journal," a national poll in which Cruz is up two points, within the margin of error there, over Donald Trump. And there you see the rest of the poll. Again, it is one poll. But here's the head to head match-up. Donald Trump versus Ted Cruz head to head if they were just going at it one against the other, Ted Cruz with a 16-point lead. And against Marco Rubio, it is also a 16 point lead for Marco Rubio. Again, one poll.

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