Updated

This is a rush transcript from "The Five," January 13, 2016. This copy may not be in its final form and may be updated.

KIMBERLY GUILFOYLE, THE FIVE SHOW CO-HOST: This is a Fox News alert, I'm Kimberly Guilfoyle. Is this the new friendly Iran? The 10 U.S. Navy sailors detained by Iran in the Persian Gulf are free, and the United States government is now thanking Iran for releasing them. The White House has said the detention doesn't seem to be hostile, but a newly released video by Iranian television may offer different insight. It shows the sailors on their knees, and the crew's captain, apologizing. National security correspondent Jennifer Griffin is live with more from the Pentagon.
Jennifer?

JENNIFER GRIFFIN, NATIONAL SECURITY CORRESPONDENT: Kimberly, a Navy lieutenant apologized in a video clip released by the Iranian revolutionary guard online, a possible violation of the U.S. military code of conduct which says, "I will give name, rank and serial number and evade answers to further questions to the best of my ability."

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It was a mistake, that was our fault, and we apologize for our mistake. The Iranian behavior was fantastic while we were here. We thank you very much for your hospitality and your assistance.

UNIDENTIFIED MALE: Did you have a special problem?

UNIDENTIFIED MALE: We had no problem, sir.

(END VIDEO CLIP)

GRIFFIN: The State Department and others denied the administration apologized.

(BEGIN VIDEO CLIP)

JOE BIDEN, UNITED STATES VICE PRESIDENT: No, there was no apology. There was nothing to apologize for. When you have a problem with the boat, do you apologize, the boat had a problem? No, there was no looking for any apology.

(END VIDEO CLIP)

GRIFFIN: State Department spokesman John Kirby added, quote, "nothing to apologize for." Officials we've spoken to say don't jump to conclusions. We don't know what kind of pressure the skipper was under. The 10 sailors, nine men and one woman, seem to have been 50 miles off-course if they indeed drifted into Iranian waters. Fox News has learned that senior U.S. Defense officials have ruled out mechanical issues caused the vessels to stray off course. That island of Farsi is a very sensitive Iranian revolutionary guard naval facility about 70 miles off the coast of Saudi Arabia. After Secretary Kerry spoke repeatedly to his Iranian counterpart over the course of 10 hours, the sailors were allowed to go in the same two boats they arrived in. There are real questions about whether the Geneva Conventions were violated by the Iranians, videotaping a confession and releasing humiliating photos and videos of the American captives with their hands up. Kimberly?

GUILFOYLE: All right, Jennifer, thank you for that report. So a lot to discuss here, Eric, that seems to me to be likened to a hostage video. I believe that that, he did that probably under coercion or worried that they weren't going to be released or killed or further harm to his crew.

ERIC BOLLING, THE FIVE SHOW CO-HOST: I would like to hear from him about wonder why he did allegedly violate protocol -- name, rank and serial number, which is what he's supposed to do. It didn't seem -- OK, here's my assessment of the whole thing. It didn't seem like they were in danger.
They may have felt like they were in danger, didn't look -- they were sitting around. They were -- hanging out, they took pictures. The bigger picture for me --

GUILFOYLE: But that's all that we saw that was released from Iran.

BOLLING: Right, right.

GUILFOYLE: Not from U.S.

BOLLING: And I know you understand this for a little while, but the bigger picture for me, far -- by far, thousands times worst is the Iranians shooting off a ballistic missile within a mile of a U.S. aircraft carrier with 6,000 seamen at within that mile, possibly at risk, who knows. And then this, next week, we're going to release -- international banking system is going to release anywhere between a hundred and a hundred fifty billion dollars to the Iranians to do whatever they please with it. There's no restriction on what they're going to do with it.

One month later, in one month after that released, the Iranians are going to have a massive widespread election in the country. Rouhani is going to be there, but every level below Rouhani is up for election. Why don't we wait and find out if the people who are elected in a month are radicals, are fundamentalists or are reformists? What -- would it hurt to spend another, I don't know, 40 -- 30 to 45 days just to make sure we're not throwing $150 billion into another terrorist network.

GUILFOYLE: I mean, why are we giving any of it to begin with? I mean, this is the problem.

BOLLING: Agree.

GUILFOYLE: And not only --

BOLLING: Agree.

GUILFOYLE: Not only -- we shouldn't be giving them. They're our enemy.

BOLLING: It's their money, but we should be holding it.

GUILFOYLE: Well, I don't know. And then they go ahead and do this, pretty brazen and humiliating, you know, our military? This is -- to me, this is so, so out of line, so objectionable. I would not give the money just based on this alone even that we shouldn't be giving it to begin with, Dana.

DANA PERINO, THE FIVE SHOW CO-HOST: Well, I think that you also have to think about the timing. So the Iranians watch us like hawks and they know exactly that the president was going to be giving the State of the Union address, so they drop this, right at 4 o'clock in the afternoon, as to lead up to the speech. I think the president was right not to mention it in the speech, though, I think the background in by the administration and like Joe Biden, trying to basically paper it over and say, "Oh, there was no problem here." I mean, clearly, there is a problem. Especially if he -- if the sailors felt like he was under pressure and, or possibly under threat.

GUILFOYLE: Yeah, under threat.

PERINO: To make that, make that video, and so hopefully we will hear from him. I also feel like, because Iran faces no consequences for any of their bad behavior, they, it does look like they constantly get rewarded. And there's a question of whether they violated the Geneva Conventions. The concern for me about the money in addition to all the things that Eric said is that, it goes to strengthen the Iranian revolutionary guard. So like, not the reformers. Like the people that we should have help in 2009, but the people that have been the sworn enemy of the United States. So, yes, I think there's still a lot to, lot to learn. The other thing to remember is that Iran definitely used this for their own propaganda purposes. They want to be able to tell their people that the United States -- that they're making this agreement but that they have the upper hand. And so, if you are in Iran and all you have is state-run media, that's all that you saw there. They don't get -- they don't have the benefit of seeing what we see.

GUILFOYLE: Yeah. Well, Greg, I don't have the idea that this is so brazen. They went ahead and they -- you know what other countries are thinking? Well, Iran did it. We can get away with it, too. It's total disrespect and violates rules -- not to mention Geneva Conventions, but Iran doesn't care, and we keep rewarding them. There's no grounding, there's no go to your room, there's no like cutting off the allowance, it's like, let's just give you even more money so you can pee all over our rug again.

GREG GUTFELD, THE FIVE SHOW CO-HOST: I don't know. President Jarrett should be ashamed of herself. This is what -- why does Iran think they have us over a barrel? It's because they know it's all about President Obama's legacy. It is about this treaty. We are emasculating ourselves in order to preserve a treaty that is part of President Obama's legacy. So you have the administration in the shape of either Kerry or Biden, Iran-explaining. You know, translating every Iranian violation as a natural action of a new pal.

And Iran knows this. They know that we will do anything. Our government will do anything just to keep this fragile relationship together, so President Obama can look back and go, ha, ha. The other part of this that is disturbing is, I always wonder, why we would take for President Obama to consider it cool to act. It always like, if you, if you are -- if you express any kind of anger or concern, it's kind of like, you know, come on, lighten up, it's not that big of a deal. Nothing is ever that big of a deal.

BOLLING: He takes microaggression more seriously than bombs being blown up.

(CROSSTALK)

BOLLING: And shut off that within our…

GUTFELD: Yeah, micro beats macro.

BOLLING: Amazing.

GUTFELD: And they confuse hostility for hospitality. I didn't think they look that comfortable there. They didn't have their shoes.

GUILFOYLE: No. And by the way, that's what Iran released. I mean, I just love it, like they're like look guys, here's a little clip just to show you. See, I mean, with friends like Iran, who needs enemies.

JUAN WILLIAMS, THE FIVE SHOW CO-HOST: Well, you ask why we're giving them money and why -- and I think to myself, have you guys missed that we, in fact, we don't want them to have nukes because we are suspicious of it, and because they are.

GUILFOYLE: Oh, now we get it.

WILLIAMS: An enemy of Israel, who's our ally. And we think that it's in the best interests of the Middle East and the world for them not to have the nukes?

GUTFELD: They'll pay the mugger not to mug you.

WILLIAMS: Well, no. I think you make deals. It's not a mugger not to mug you. We just took away their ultimate weapon.

BOLLING: How?

GUILFOYLE: Whoa.

(CROSSTALK)

WILLIAMS: We deny them --

PERINO: Nuclear weapon?

(CROSSTALK)

PERINO: No, no. Even though the administration says they will get the nuclear weapon.

WILLIAMS: Well, no. They won't get it in the next 15 years.

PERINO: Oh.

WILLIAMS: And so the point --

(CROSSTALK)

WILLIAMS: The point is.

PERINO: Yeah, right.

(LAUGHTER)

WILLIAMS: The point here is look, the U.S. ship, by everybody's admission, strayed into Iranian waters. They're a sovereign nation; you're not denying that, right? OK, they're sovereign nation. If Iranian soldiers had strayed near our shores, and especially, in such a sensitive spot near that Farsi Island, everybody is in there trying to get intelligence. So if they strayed in, and they let them go --

GUTFELD: We wouldn't treat them like that.

WILLIAMS: Oh, no.

GUTFELD: If it was Britain, it was England -- if it was England?

WILLIAMS: Those are our allies.

GUTFELD: Well, you know, I thought, wait a minute. I thought Iran is our ally?

(CROSSTALK)

WILLIAMS: Oh yeah, a minute ago.

(CROSSTALK)

WILLIAMS: A minute ago, you thought they were the devil.

GUTFELD: No, I'm saying.

WILLIAMS: Oh.

GUTFELD: President Obama thinks they're an ally.

WILLIAMS: Oh, get out, come on.

GUTFELD: They just -- wait, this is a wonderful treaty.

WILLIAMS: Look, the fact is, the fact is right now, you get Cruz on the campaign trail saying this is a sign of weakness in American foreign policy. Trump says they're taunting us, Christie says, you know, this is a sign of what's going on with Obama. This is being politicized.

GUILFOYLE: That's all true.

WILLIAMS: By people who look for something, when there really isn't --

GUILFOYLE: Oh my, God.

WILLIAMS: Eric said it yesterday.

GUILFOYLE: You can't really believe what you're saying.

(CROSSTALK)

BOLLING: No -- I think -- I agree, I think this is nothing-ball. But I do think what they did, two weeks ago.

WILLIAMS: Yeah.

BOLLING: Is massive.

WILLIAMS: Well, there.

BOLLING: They violated the treaty that we just signed.

WILLIAMS: Right.

BOLLING: The deal we just signed.

WILLIAMS: And that's where you're right. Because I think the reason that we are downplaying so many other things is, lets it -- let's see the treaty with regard to the nukes implemented.

BOLLING: But we need to, we need to also note that the White House said today that.

GUILFOYLE: Yes.

BOLLING: If the sanctions were actually approved, which they weren't, for some stupid reason. If the sanctions on Iran for shooting off that ballistic missile were approved, the White House was going do veto it.

WILLIAMS: Well, for now. But he also said.

GUTFELD: Juan --

WILLIAMS: And I think Denis McDonough said this weekend, we will, in fact, down the line, review these sanctions.

GUTFELD: Juan, seeing our man in a surrender position doesn't make anybody feel good.

GUILFOYLE: No, it doesn't. That was unnecessary.

GUTFELD: It doesn't make anybody feel good. Maybe we'll send James Taylor there. Will that make you happy?

GUILFOYLE: Oh my, gosh, his song.

GUTFELD: You could sing.

BOLLING: You've got a Friend.

GUTFELD: He could sing Come Sail Away, the great Styx song.

GUILFOYLE: Yes, yes, yes. Strumming some diplomacy.

GUTFELD: Yeah.

WILLIAMS: Anyway.

GUILFOYLE: In a country nearby you.

OK, next, it was President Obama's last State of the Union address -- yeah, big smile, and you can bet, we've got a lot to say about it. Up next, what we think were the best and worst moments. Stay with us.

(COMMERCIAL BREAK)

BOLLING: Welcome back. Last night, President Obama delivered his final State of the Union address. It lasted about 59 minutes. It was packed, filled with politics, but lacked any semblance of policy. Now producers wanted us each to pull a clip of our quote favorite moments from the evening, here was mine. When POTUS finally got around to talking about our bad-ass military, he started out well, but keep particular attention to our Joint Chiefs and the look on their faces, not buying the Obama BS, listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, UNITED STATES PRESIDENT: The United States of America is the most powerful nation on earth, period.

(APPLAUSE)

Period. It's not even close.

(APPLAUSE)

It's not even close.

(APPLAUSE)

It's not even close. We spend more on our military than the next eight nations combined.

(APPLAUSE)

Our troops are the finest fighting force in the history of the world.

(APPLAUSE)

(END VIDEO CLIP)

BOLLING: Now he got them to their feet, but in true Obama-style politics, he dropped this bomb on us, and then again, downplaying ISIS' threat to America.

(BEGIN VIDEO CLIP)

OBAMA: We just need to call them what they are -- killers and fanatics, who have to be rooted out, hunted down, and destroyed.

(END VIDEO CLIP)

BOLLING: No wonder those generals and admirals were so stern-faced. They probably knew that scud missile was on its way. We'll do a quick discussion before we get to everyone. Dana, it started out well for him and then he --

PERINO: I didn't think so. I mean, I actually tuned in to the speech and I really wanted to find something positive to compliment, and I had a hard time. I thought -- I might be in the minority. I thought it was one of the worst speeches I've seen President Obama give.

(CROSSTALK)

PERINO: On the military point, which I'm getting to. I actually think that the military should never be used as a political prop.

GUILFOYLE: Yup.

PERINO: Just like the Supreme Court should not be used as a prop. And so, I don't think they were stern-faced, I don't think that they were like wait, now the cameras are on us and now people, if we stand, if we don't like, they're told not to react. Sort of like the Supreme Court, which is when, a few years ago when President Obama targeted the Supreme Court and they're sitting there and Justice Alito said, "that's not true" you know, under his breath. He said he won't go to a State of the Union again, because he should not be used as a political prop. And I think that that was an unfortunate thing to do to them.

BOLLING: Very good, now your moment?

PERINO: OK, well. I had fun tweeting about it last night -- the whole speech, but this is the one that I just thought was an incredible line.
Take this passage about Ukraine.

(BEGIN VIDEO CLIP)

OBAMA: I know this is a dangerous time, but that's not primarily because of some looming superpower out there and it's certainly not because of diminished American strength. In today's world, we're threatened less by evil empires and more by failing states. Economic headwinds are blowing in from a Chinese economy that is in significant transition. Even as their economy severely contracts. Russia is pouring resources into prop up Ukraine and Syria. Client states that they saw slipping away from their orbit.

(END VIDEO CLIP)

PERINO: OK. Everybody has forgotten about what's happened in Ukraine, because our government decided not to do anything about it in terms of helping that sovereign nation, it was invaded by Russia. Russia is not propping up Ukraine because it was a failed state. It was like failed state, because it was invaded by Russia and we did not do enough to help them. That -- I just thought that the whole speech was bad, but that piece in particular, I thought should be highlighted.

BOLLING: Very good. You want to comment on Dana's and then throw yours up?

GUILFOYLE: No, I agree with that. It's not -- there's so much to talk about in terms of the, a number of failures -- and by the way, the disappointments, the disappointments in this speech. Here's one of my favorites, where he's like, how tough he is on terror -- yes, watch out for me. I'm the king of a crushing terrorists, just ask bin Laden.

(BEGIN VIDEO CLIP)

OBAMA: If this Congress is serious about winning this war and wants to send a message to our troops and the world, authorize the use of military force against ISIL. Take a vote.

(APPLAUSE)

OBAMA: But the American people should know that with or without congressional action, ISIL will learn the same lessons as terrorists before them. If you doubt America's commitment, or mine, to see that justice is done, just ask Osama bin Laden. Ask the leader of Al Qaeda in Yemen, who was taken out last year or the perpetrator of the Benghazi attacks who sits in a prison cell.

(END VIDEO CLIP)

GUILFOYLE: It's not buying it. You know, his record does not support the statements. He still like dragging bin Laden body back out, you know, across, in front of everybody to say, remember this. But it's like, what have you done for me lately? And why has ISIS under your watch, Mr. President, gone from the JV team to super varsity.

BOLLING: Well, he actually called them, what he called them, fanatics and killers?

GUILFOYLE: Yeah --

(CROSSTALK)

PERINO: I'll just say something quickly. When he's calling for -- the Democrats now are hanging their hat on it. The president is so tough that the republicans on help because they won't pass on you authorization to use military force. But he just said to himself, with or without the authorization to use military force, he will act.

(CROSSTALK)

PERINO: And I want to know this from the administration, what action do you want to take against ISIS that you are not able to take right now under the current authorization to use military force? What do you want to do that could be changed under an authorization to use military force? If they can answer that question, I think that they could get a new one. But they already have one that's broad enough to be able to take care of it.

WILLIAMS: That's not the point. The point is that the republican --

PERINO: What is the point? It's a rhetorical point, baloney.

GUILFOYLE: Yes.

WILLIAMS: The republicans are so uncertain of their own -- so politically insecure. They won't even --

PERINO: That is not true.

WILLIAMS: Even if they say.

PERINO: That is not true.

WILLIAMS: They won't act. Oh, why don't they act?

PERINO: That is not true, because --

WILLIAMS: Boehner wouldn't act. Ryan won't act.

PERINO: It's not true. It's because the one that the president sends up would have limited the president's capabilities.

WILLIAMS: No.

PERINO: And they don't want to do that to the next president.

WILLIAMS: Remember, that the Democrats don't want to give anyone carte blanche, and imagine that the republicans don't want to give him carte blanche. They want this to be a (inaudible) where the president acts as...

PERINO: What does he want to do that he can't do now?

WILLIAMS: I'll say this? He want the --

PERINO: You can't answer because there's nothing.

WILLIAMS: If you gave me a chance, I'd answer, Dana. He wants the United States of America to have a unified political front versus our enemies.

PERINO: We have one.

WILLIAMS: And that's not a bad one.

PERINO: We have one.

WILLIAMS: What they want is --

PERINO: There's an authorization to use military force, because they have it.

WILLIAMS: The Congress, the republican won't even give the president authorization to use force?

PERINO: He already has it.

BOLLING: Can we just bring in -- Greg, can you believe he used the word, the name Benghazi?

GUTFELD: And I know that was rich. Yeah, the one just -- to comment overall on the speech, that vocal gymnastic routine he does, the straining of the voice. It's like he's playing folk songs at a coffee shop that sells used books. Just gets on me after a while.

BOLLING: All right, Juan, your turn.

WILLIAMS: Well, I thought that when he spoke directly to the doom and gloom on the Republican campaign trail. I wanted to stand up and cheer, because here was a moment, a Ronald Reagan moment of Morning in America optimism.

(LAUGHTER)

WILLIAMS: In the face of all the darkness, play it.

PERINO: Way.

GUILFOYLE: Oh my, gosh.

(BEGIN VIDEO CLIP)

OBAMA: Anyone claiming that America's economy is in decline its peddling fiction.

(APPLAUSE)

Now, what is true, and the reason that a lot of Americans feel anxious, is that the economy has been changing in profound ways. Changes that started long before the great recession hit, changes that have not let up.

(END VIDEO CLIP)

WILLIAMS: Right. So you have technological change, you have globalization, and here's the president saying, hey, wait a second. Let's pay attention to corporate profits at record highs, stock prices doubling, 5 percent unemployment, median income coming back up to the -- where it was before the recession.

BOLLING: No, it hasn't.

WILLIAMS: Yes, it has.

(CROSSTALK)

GUTFELD: I got to drift this.

BOLLING: Below and Obama just (inaudible).

WILLIAMS: Yeah, I got it. Check with the facts.

GUTFELD: No, Eric destroyed this article --

BOLLING: Exactly.

GUTFELD: Argument yesterday.

BOLLING: Hold on, can we --

GUTFELD: Yeah.

(CROSSTALK)

BOLLING: One second. I have the facts.

WILLIAMS: I'm telling you.

BOLLING: Median household income is below when Obama took office.

WILLIAMS: No, I'm telling you, median household now.

BOLLING: It is lower, Juan, now. It is.

WILLIAMS: Back to 56,000 which is where it was before the recession today.

BOLLING: No, Juan. It's below --

WILLIAMS: OK, I get it.

BOLLING: He took office in January of 2009.

GUILFOYLE: Juan's world.

BOLLING: It's below that level right now.

GUILFOYLE: Juan's world.

(CROSSTALK)

BOLLING: A play show -- dinner, on that.

(CROSSTALK)

GUTFELD: When there's one word --

(CROSSTALK)

WILLIAMS: I don't like --

(CROSSTALK)

GUILFOYLE: Juan, Juan, there's one word that I love about this.

WILLIAMS: What?

GUTFELD: When President Obama is proclaiming the durability of the economy, he's right, because it survived eight years of his reign. I mean, it's like a stuntman praising a car that he just double-rolled into the lake and it still works. It's like this car is pretty durable.

GUILFOYLE: Yeah.

GUTFELD: That's the president.

WILLIAMS: Oh, is that at? So who drove the car when it went through the recession?

(CROSSTALK)

GUILFOYLE: Meaning, despite.

WILLIAMS: Oh, I see. I see.

GUILFOYLE: Trashing the economy, capitalism and the free market, we've managed to survive.

WILLIAMS: I -- you know what?

GUILFOYLE: And we will outlast him.

WILLIAMS: I can't believe. I'm the only one Greg.

GUTFELD: This table.

WILLIAMS: At this table who's pro-American.

(LAUGHTER)

GUTFELD: OK.

WILLIAMS: Pro-America.

GUILFOYLE: Oh my, gosh.

BOLLING: Right, OK.

GUILFOYLE: Bolling.

(CROSSTALK)

(LAUGHTER)

WILLIAMS: I got you guys.

BOLLING: You've been ejected from the table.

(LAUGHTER)

GUILFOYLE: You're out.

GUTFELD: Your button.

BOLLING: Your moment.

GUTFELD: My moment --

(CROSSTALK)

GUTFELD: My moment was -- I wasn't there, I didn't watch it, because I did the Daily Show.

GUILFOYLE: Oh.

GUTFELD: I gave my vision of America, specifically about immigration, and you know the audience loved it.

(BEGIN VIDEO CLIP)

GUTFELD: For example, if are you like me and believe that immigration is an important issue and that there should be a front door, not a window. It's like I believe that everybody should be welcomed into this country.

TREVOR NOAH, THE DAILY SHOW HOST: OK.

GUTFELD: As long as you come through the front door, not the window. America is the greatest place in the world. It's Disneyland for earth. Seriously, do you know what it is? America is the lifeboat and the rest of the planet is the titanic.

NOAH: Have you, have you --

GUTFELD: Thank you.

NOAH: Have you travelled?

GUTFELD: Yes, I have. I've been around, believe it or not.

NOAH: That's good. There are many amazing countries in the world. I mean, America is a great country.

GUTFELD: Oh no, do not exaggerate.

NOAH: But there are best.

GUTFELD: There are four.

(CROSSTALK)

GUTFELD: There are four amazing countries.

(LAUGHTER)

GUTFELD: There are four. Let me think of -- hold on, let me think of them.

NOAH: OK, OK, OK, OK, I'm going to ask you.

(CROSSTALK)

NOAH: I'm gonna ask you one. I'm gonna ask you --

GUTFELD: Is Turks and Caicos are two countries?

NOAH: I'm gonna ask --

(LAUGHTER)

(END VIDEO CLIP)

GUTFELD: Yeah. Well anyway.

PERINO: You were hilarious.

(CROSSTALK)

GUTFELD: That the audience felt differently, but yeah.

GUILFOYLE: Well, we think you're pretty funny. That was good -- Turks and Caicos.

BOLLING: It's amazing how -- I bet if you tested that same joke on conservatives.

PERINO: Yeah.

BOLLING: They die. They would love it.

(CROSSTALK)

PERINO: It was on their head.

GUILFOYLE: Yup.

GUTFELD: They were actually very nice, though. And the whole crew there is great.

(CROSSTALK)

GUILFOYLE: And you had a better reaction than Obama had.

(CROSSTALK)

GUTFELD: True.

PERINO: That was unreal.

GUTFELD: Yeah.

(CROSSTALK)

GUTFELD: I think so. Yes. And I think that it opened the door and they're very, they watch the show, they love the show.

BOLLING: Didn't he say, Greg Gutfeld, one of The Five -- collect them all?

GUTFELD: Yeah.

BOLLING: I did read that somewhere.

(LAUGHTER)

BOLLING: All right, ahead. Do liberals really care about women and minorities succeeding if they aren't liberals, you won't believe what Debbie Wasserman Schultz said. That tape, next.

(COMMERCIAL BREAK)

PERINO: Last night, GOP respond to the State of the Union seems to be getting more attention on the president speech in some quarters. It was delivered by South Carolina governor Nikki Haley. While some of the Republican Party took issue with her speech. Charles Krauthammer thought it was the best he's ever heard.

(BEGIN VIDEO CLIP)

CHARLES KRAUTHAMMER, SYNDICATED COLUMNIST: I'd like to know who wrote her speech, because if she wrote it, then she really is a rising star. It was the best-written and best-delivered answer to a State of the Union address I've ever heard, and that's going back a lot of years. Even the lighting was good. You know, she was poised, and she did it all, I thought, rather cleverly.

(END VIDEO CLIP)

PERINO: But the most shocking response, perhaps, comes from Democrats, who tried their hardest to belittle the Republican pick. The head of the DNC accusing the GOP of only choosing the governor because of her Indian heritage, because the party has a, quote, "diversity problem." Watch Megyn Kelly push back on DWS last night.

(BEGIN VIDEO CLIP)

MEGYN KELLY, FOX NEWS ANCHOR: As a woman, don't you think it's diminishing to say they had to put her up there for diversity purposes.

SEN. DEBBIE WASSERMAN SCHULTZ, DNC CHAIR: Even the Republicans themselves have acknowledged that they have a diversity problem.

KELLY: Couldn't she have been picked because she's smart, she's savvy, she presents well, she's articulate, and she's a great spokesman for the Republicans?

WASSERMAN SCHULTZ: Because she has actually done damage to her stage.

KELLY: You be careful with your language.

WASSERMAN SCHULTZ: I'm being careful.

KELLY: As a woman, when it comes to women, what are you going to say when people say they only made Hillary the nominee, if she becomes the nominee, because she's a woman? You're going to say that's sexist and watch it.

WASSERMAN SCHULTZ: Well, of the people in the Republican Party, if you take a look at accomplishments and popularity, Nikki Halle is not the person that would leap to mind at the top of that list.

(END VIDEO CLIP)

PERINO: Her name is Nikki Haley.

GUILFOYLE: Thank you.

PERINO: Kimberly, I've said before, like, the last thing you're allowed to be in America is a conservative woman. Especially if you're a minority conservative woman. Nikki Haley felt it that night from DWS.

GUILFOYLE: I'm still reveling in the euphoria of the just, like, butt- whipping that M.K. gave to DWS. Love it.

Yes, you know, she's stuck there. She's a hypocrite. They don't even want her in their own party any more. She's on fumes, DWS is. OK? Literally, you know that. They're like -- to throw her out, and she should be.
Because the stuff that she pedals, the vitriol and the lies about the Republican Party, unbelievable and without merit.

And instead of being supportive to women, she's actually hating on the gender by being dismissive of Nikki Haley and her accomplishments. It's -- to me it's just -- it's so offensive that she's part of the war on women with the way she behaved in her comments. Boo.

PERINO: Greg, you make the point about the diversity on the Republican side, on the -- at least on the presidential ticket, compared to the Democrats.

GUTFELD: It's weird. Feminism is the new patriarchy. I mean, they decide. They decide who has the power among women. It's no longer men.

You know what? The hypocrisy is Hillary's central campaign plank is her gender. She is running because she is a woman. It's all chromosomal.

And by the way, Debbie is so dopey that this argument could be used against her, as well. That she only has that job because she's a woman. She's the frizzy pot calling the kettle black. I mean, this is crazy. Why was President Obama, candidate Obama chosen? They knew he would be a historical first because he's black.

I mean, this is -- so what?

WILLIAMS: The point was Mrs. Clinton, she would have been an historical figure.

GUTFELD: Yes, but you know what they did? They played historical firsts game. Historical black beats historical white.

WILLIAMS: It would have been a first in either.

GUILFOYLE: Yes, it's like Rochambeau, rock, paper, scissors.

PERINO: Rock, paper, scissors.

GUILFOYLE: It's true.

PERINO: It totally was.

GUILFOYLE: You get the commemorative Franklin light burst (ph).

PERINO: If you're the DNC, why bother talking about Nikki Haley and just try to focus all of your attention on Trump, Cruz, Rubio, Jeb. You know, the whole cartload of them.

BOLLING: Not only that. Megyn did a masterful job leading her into that.
You have a talking point on the right. A GOP candidate can use that when you're talking about Hillary Clinton, who says you know, it's -- it on the Democrats. You want to elect the first woman. OK. Are you only the candidate because you are a woman. Because Debbie Wasserman Schultz seems to think that that's why people put people up in those positions to do so.

I think it was a huge fail on her part.

WILLIAMS: Let me just say, Clinton was a senator.

BOLLING: Yes.

WILLIAMS: Clinton was a secretary of state.

BOLLING: OK, and Nikki Haley is the governor of a state doing extremely well with jobs.

WILLIAMS: OK. First of all, I thought Nikki Haley did a great job last night. So I was surprised this morning when I saw that a lot of people on the right were upset about Nikki Haley. And I just -- I was like wow. If that's, why isn't she running? She did a great job.

I think Charles Krauthammer is exactly right. The best response to a State of the Union I have ever seen. So, you know, when you talk about her accomplishments, I like Nikki Haley.

I mean, not only in terms of the way she handled the shooting, the Confederate flag. Remember, she was the one who appointed Tim Scott before Tim Scott was elected to the U.S. Senate.

GUILFOYLE: So why does the DNC got to hate on her, then?

Why? Why?

WILLIAMS: I think that she feels like this woman is up there to make the Republican Party look like it's a diverse party when it's not.

BOLLING: Why? Why is it not?

GUILFOYLE: I know. Why is it not?

BOLLING: What are we, 13? What, are 12 or 13 candidates right now, which is far more diversity than...?

GUILFOYLE: Last time I checked, how many Republicans in your family? The Republican Party is diverse.

WILLIAMS: No, I -- I think it's mostly white. Overwhelmingly.

GUILFOYLE: Oh, right.

(CROSSTALK)

PERINO: ... wrote a column on "The Slate" which has irritated people.

BOLLING: I bet you there are more African-Americans, conservatives than liberals.

WILLIAMS: Really?

BOLLING: Numbers.

WILLIAMS: Boy, this is going to be a big dinner.

GUILFOYLE: Who wants to be a billionaire? Tonight's the night, the largest Lotto jackpot in the world is up for grabs. Are you holding the winning Powerball ticket? Will the government be the biggest winner of all? Probably. That's next.

(COMMERCIAL BREAK)

GUTFELD: Powerball is now at $1.5 billion. The drawing is tonight.

Yippee.

It's grown so fat, because they lowered the odds to boost the size. It's like an all-you-can-eat joint that keeps extending its hours, and we're Michael Moore.

And people ignore the odds when wishing -- when wishful thinking takes over. Compare the odds to terror. You're ten times more likely to die from that. But the government says don't worry. Even as terror methods change. ISIS now seeks bioweapons to make their own kind of Powerball.
But if you worry, you're stupid says the government. So go play the Lotto instead, you dumb people.

Did I say people? I mean poor people. People who play the Lotto tend to belong to low-income households. You can call that a tax on the poor, but it's not, since a tax is money taken, not spent. But it is gambling, and it is hypocrisy. Our government pushes a numbers racket but goes after fantasy football. Could their selective righteousness be profit-driven?

The Lotto makes billions, which apparently goes to education. But if you've seen improvements at that end...

GUILFOYLE: Oh, my God.

GUTFELD: ... please let us know. Your kid has better odds winning the Mega Millions than a science fair.

Either way, a real Lotto would offer not just a prize, but for me, a consequence. Would you play it if there were a risk of death? What if you could buy a winning ticket, or a toxic one, a deadly one? At least that's a cost we might understand. A cost that keeps us from feeding that beast at the buffet.

All right then.

Usually it ends with a thing that goes, blat. But anyway, the only thing here -- back to me, people. Hey, cameraman, wake up. All right. The only thing better than the Lotto is her laughter.

(BEGIN VIDEO CLIP)

GEORGE STEPHANOPOULOS, ABC ANCHOR: Powerball ticket?

HILLARY CLINTON, D, PRESIDENTIAL CANDIDATE: I did.

STEPHANOPOULOS: And if you win?

CLINTON: Well, I'll fund my campaign.

(END VIDEO CLIP)

GUTFELD: I -- I can't get enough of her joyful laugh.

Anyway, Eric, I know you are into this.

BOLLING: Not enough money to fund her campaign. There are consequences there are consequences of the money you fork over to buy tickets. By the way, put your $5 in.

GUTFELD: Right, right, right.

BOLLING: Into the Powerball. We've got a bunch of tickets.

GUILFOYLE: I'm going to play. Bolling, I'm going to play like a liberal and always use other people's money.

GUTFELD: Always taking from the black man, Kimberly.

BOLLING: All right producers are here. Greg is here, too. But there's one name missing, Porter. If you don't get me 5 bucks, you're not going to share in the $1.5 billion.

WILLIAMS: React to what Gregory said, because you are not a poor man. And in fact...

GUTFELD: He loves the lottery.

WILLIAMS: ... this is a regressive tax on the poor.

GUTFELD: It's not a tax. They're choosing.

WILLIAMS: But you know what? They're suckers, right?

BOLLING: This is supposed to be entertainment. That's what it's supposed to be, and it is a tax. Yes, it is. Yes, you don't -- clearly don't get your money's worth.

PERINO: But you're not under duress.

BOLLING: You're not forced.

GUTFELD: Tax is -- tax is money by force. If you don't pay your taxes, you go to jail. But if I don't play the lottery, I don't go to jail.

GUILFOYLE: Right. And then it's better than Obamacare, where you're getting forced to buy that, and you get nothing in return.

GUTFELD: That is a lottery.

GUILFOYLE: At least this, you get a chance of getting something.

WILLIAMS: So what happens if we win?

BOLLING: We split it?

WILLIAMS: Well, you know, I just was reading that, that people like us, an office pool shouldn't do it, because we won't remain anonymous. How are we going to be anonymous on FOX News Channel?

BOLLING: There's all of them.

GUILFOYLE: Right. You're worried about that. You've got to, like, not win?

WILLIAMS: We will win.

BOLLING: Dana...

WILLIAMS: Everybody is going to know we won.

GUTFELD: I floated this idea. Wouldn't it be interesting if the Lotto had consequences, too? And it's -- I never saw "Hunger Games," but apparently that's how it works. But wouldn't that be great if you bought a ticket, but you could -- the ticket could -- you take it home, and it could blow up in your hand?

PERINO: I want to say that the chances of winning the Powerball, it's less likely than if you were to get struck by lightning twice.

GUTFELD: Right.

PERINO: But if I were to -- what was it, I will die if I get that ticket that you're talking about, with consequence. Would I still buy one?  Makes it a little bit more interesting.

GUTFELD: Yes, it does.

BOLLING: Can I throw a quick number at you?

GUTFELD: Yes.

BOLLING: Two hundred ninety-two million combinations. So you have one in292 million chances to -- odds of winning. But when the Powerball jackpot gets so big, that actually helps you out. That becomes one of the better, one of the better bets.

PERINO: I don't understand that.

GUILFOYLE: Bigger, better.

PERINO: Why?

BOLLING: Because the payoff becomes bigger in relation. The odds don't change, but the payoff becomes bigger.

PERINO: So your risk is a better risk?

WILLIAMS: I think we -- if we win -- if we win I think, we are challenging the fates. Because it says that most people who win are broke in five years.

GUTFELD: I don't know if that's true. I think it might be an urban legend. I think that most people that win actually want you to think that so you leave them alone.

So you're like, my uncle just won $10 million. He goes, "I'm sorry, Greg, I'm broke."

GUILFOYLE: Right.

GUTFELD: "I'm broke. I spent it all on cocaine."

And I go, "You, too?"

No, but it's -- people just lie. People don't want you to know that they have money.

GUILFOYLE: But this thing is no one will know when we win.

WILLIAMS: That's what I'm worried about.

GUILFOYLE: Would you rather, like, not win?

WILLIAMS: I'm glad. Everyone is going to know.

GUILFOYLE: I'll take Juan's share.

BOLLING: By the way, I bought these tickets from two separate locations.

PERINO: Smart.

WILLIAMS: Did you pick the numbers?

BOLLING: No, they were all quick picks.

WILLIAMS: OK.

GUILFOYLE: This is fun.

GUTFELD: Thank you.

Last night's State of the Union might have been the president's most boring ever. I didn't write that. I didn't see it.

PERINO: That's true.

GUTFELD: OK. I just need to have it verified.

GUILFOYLE: You heard it on the cell phone.

GUTFELD: But even Nancy Pelosi thought so. Luckily, the audience kept us entertained throughout. The best cut-away shots from the speech, next.

(COMMERCIAL BREAK)

WILLIAMS: President Obama's final State of the Union address was his shortest. But apparently, it was still too long for some people in the crowd.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I have no doubt, a president with the gifts of Lincoln or Roosevelt might have better bridged the divide.

To stand up for others, especially the weak.

We need every American to stay active in our public life. Every single month since it became law. Now, I'm guessing we won't agree on healthcare any time soon.

(END VIDEO CLIP)

WILLIAMS: The cut-away shots kept a lot of people entertained. And a lot of people on social media were watching Paul Ryan's face. The House speaker sat behind the president without clapping almost the entire time.

The speaker tells "USA Today" that he kept a poker face out of respect for the institution but disagreed with much of what the president said. He just tried to be wallpaper, he said, and not wince or grimace at Obama's comments.

Ms. Perino, I know you're not a fan of the speech. Were you asleep?

PERINO: No.

GUILFOYLE: You weren't?

PERINO: I actually took Nyquil an hour before, and hoping that I could get rid of this cold that was coming on. Which the cold went away. I stayed awake, I watched the whole speech. I had a lot of fun on Twitter.

The applause was late; the laughs were forced. The cut-away shots were brutal. There was this one row that they kept showing of congressmen and women that I said they should never cut to that again, because they looked so totally bored.

Plus the president said that -- and I was so happy at the beginning. They said this speech was going to be shorter. And then I saw the written remarks, and I'm following along; and I think this is not shorter. It was almost an hour long. It was a long speech.

WILLIAMS: Kimberly, Ruth Bader Ginsburg stayed up.

GUILFOYLE: I know. Good on you. But the thing is -- like, this time.

It's just kind of embarrassing, right? When everybody is asleep, and it's like the snooze alert. You know, stand by for the snooze alert. The State of the Union, you know, but guess what? That was his last one.

WILLIAMS: So Eric -- Eric...

GUILFOYLE: Happy note.

WILLIAMS: The only Republican candidate I saw was Marco Rubio. Where was the rest? Where were the rest of them? That's the only one that was there.

GUILFOYLE: Bernie Sanders.

WILLIAMS: No, no. He's not a Republican. I know -- I know you think he is. But no, he's not.

BOLLING: Obama's joke at the beginning was pretty funny.

PERINO: The best joke of the night.

BOLLING: You've got to get back to Iowa. That was funny. I think the reason why people are falling asleep is because there's no -- there's no policy. This is all -- this is what we've done. Look how great we've been. Those aren't typically the most exciting speeches when you have the policy where one side hates it and one side loves it. The side that loves it stands up and is really loud, and the side that hates it sits there like that. That's kind of fun watching that.

WILLIAMS: The only time I saw the both sides get up was with the vice president and...

BOLLING: The military, the military.

WILLIAMS: Yes. But the military is kind of predictable. Anyway, Gregory, did you watch?

GUTFELD: No. You know, the funny thing is, I was -- I had been invited to go, but I couldn't make it, because I had plans. My favorite cut-away was
-- I let Marvin Meerkat, a friend of mine, take -- have my seat, and he was there. And he had a really -- he had a rough time staying awake through the whole thing. There he goes. Goodness.

GUILFOYLE: I'm up, I'm up!

GUTFELD: I thought it was -- that it was a noble -- a noble effort on his part, but kind of rude.

WILLIAMS: Rude. Especially since you gave him the ticket.

GUTFELD: I know.

GUILFOYLE: Like a five-hour...

WILLIAMS: "One More Thing" up next.

(COMMERCIAL BREAK)

GUILFOYLE: It's time now for "One More Thing." I'm going to call myself first.

All right. According to a new study that I believe should be highly regarded, people who are prone to rage attacks, or temper tantrums have smaller, emotional brains. Little itty-bitty ones.

So researchers discovered that individuals who have intermittent explosive disorder -- This is a real thing, people -- have less gray matter in the frontal limbic range of the area of their brain region, OK, that regulate your emotions.

I'm just thinking to myself, does this study remind me of anybody? It's him. The meerkat daddy.

GUTFELD: Now you know why I get angry all the time.

GUILFOYLE: I know. I'm so sorry. But it's true, but it's true.

And you're wearing gray -- Dana.

PERINO: All right. You've got to see this adorable rescue dog. His name is -- Herbert and Amanda Robles, she is in Chicago, and she is fostering this dog for PAWS Chicago. And you've got to see what she -- what he does when she tells him to say cheese. Take a look.

GUILFOYLE: Here we go.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Say cheese.

Say cheese.

(END VIDEO CLIP)

PERINO: That is so cute. Please, somebody adopt him. His name is Herbert.

BOLLING: That dog is available. I want that dog.

GUILFOYLE: Is that the cutest thing you've ever seen?

PERINO: We might -- we might have a taker. It's so cute, right?

BOLLING: That dog is up for adoption?

PERINO: Yes. In Chicago.

GUTFELD: They're not pulling his mouth by the strings, are they?

GUILFOYLE: Bolling, it's your town. It's Chi-town.

BOLLING: That's still available.

PERINO: Wow. Call us, Amanda.

GUILFOYLE: You like it, because you like when I do my little "Bewitched" nose thing, and you like the cheese face, cute -- Greg.

GUTFELD: All right. A lot has been said about David Bowie. He passed away Sunday, 69, and -- at the age of 69 from cancer. I idolized him through the 1970s, so I will only add one of his accomplishments that maybe a lot of people don't realize. That in 1972, he invented the first punk rock riff that, for the next 30 years was picked up by everybody from The Clash, the Ramones, the Richard Hell, you name it.

It all came from this guy. If you want to look up the song "Hang Onto Yourself." It's off the "Ziggy Stardust" album. I think it was 1971, 1972 -- 1971 that it came out. It's a great song. And if you're not familiar with David Bowie, that's a great place to start.

GUILFOYLE: Aw, that's sad, young. You know?

Yes.

BOLLING: OK. Take a look at the full screen, because you have to tune in to this. If you haven't been watching FOX Business and you like business programming, they are killing it. They're crushing it, putting a beating on the competition. And guess what happens tomorrow night?

They're going to do it even further. Two debates, 6 p.m. and 9 p.m. Republican debates, they've been all over it. Cavuto, Bartiromo, Sanders, Smith and one more -- and is it Trish Regan?

GUTFELD: Yes.

BOLLING: Trish Regan. They've been all over it. Find it, ChannelFinder.com. Channel Finder in the FOXBusiness.com if you need a channel for that debate.

WILLIAMS: All right. Real quick, Blair Walsh of the Minnesota Vikings missed a chip shot Sunday, 27 yards. Would have sealed the deal, won the game for his team. So an elementary school teacher in Minnesota, Judie Offerdahl, decided to make a lesson in empathy by having her students write to Mr. Walsh.

And some of the letters just darling. Someone says, "Everyone makes mistakes, but the team still appreciates you." Another one, "Keep on trying. Puppies are cute." You like that, Dana.

And finally, "You're handsome. Don't worry, it's just a game."

GUILFOYLE: All right. "Special Report" is next. Thank you.

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