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NEW DAY SATURDAY

Donald Trump Speaks With Taiwan's President; Trump Defense Secretary Pick is "Mad Dog" James Mattis; 13 Killed, Dozens Displaced Around Gatlinburg; Student Accused of Killing Professor At USC; Trump Saves Carrier Jobs, But Another Company to Send Jobs to Mexico; Jurors Nearly Deadlocked in Ex-Cop's Murder Trial; Remains of Victims Being Returned to Brazil. Aired 7-8a ET

Aired December 3, 2016 - 07:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[07:00:00] MARTIN SAVIDGE, CNN ANCHOR: I'm Martin Savidge in for Victor Blackwell. President-elect Donald Trump won on a platform where he promised to shake up the status quo in Washington. Now, it appears he's doing just what he said he would do before stepping into office.

CHRISTI PAUL, CNN ANCHOR: Yes, it was yesterday, of course, chatting on the phone with the President of Taiwan, and that exchange breaks with nearly 40 years of U.S. diplomatic relations with China. So, overnight, China is calling this, quote, "a shenanigan staged by Taiwan." Trump's transition team meanwhile, says the President-elect with President Tsai of Taiwan who offered her congratulations, and then they went on to talk about the, quote, "close political, economic, and security ties" that exist between Taiwan and the U.S.

SAVIDGE: But no president or president-elect, for that matter, have spoken directly with the leader of Taiwan since 1979. Since then, America has adhered to the one China policy, meaning that they consider Taiwan part of China. This, after Defense Secretary Ash Carter recently called the region "the most consequential for America's future." In September, Carter also said that the U.S. will sharpen its military edge there in the face of Chinese territorial expansion on dispute of waters in the South China Sea.

Our team of reporters standing by for the latest on this. And let's begin with CNN's Jessica Schneider live at Trump Tower in New York. And good morning to you, Jessica.

JESSICA SCHNEIDER, CNN CORRESPONDENT: Good morning, Martin. Yes, it is the phone call that has bucked nearly four decades of diplomatic tradition and protocol. President-elect Trump insisting that that 10- minute phone call was initiated by the President of Taiwan, but nevertheless, the backlash is already apparent. China reached out to the White House yesterday. And now, the spokesman for the Chinese foreign ministry is releasing this statement saying, "I must point out that there is only one China in the world, and Taiwan is an inseparable part of the Chinese territory. The People's Republic of China is the sole legal government that represents China and that is an intentionally recognized fact. The one China principle is the political foundation of China-U.S. relations. We urge the relevant side of the U.S. to adhere to the One China Policy."

Of course, China views Taiwan as a renegade province, and the U.S. has long recognized Beijing's claim that Taiwan is part of China. And now, Donald Trump is on the defensive. In fact, last night, after all of this hoopla, he did tweet out this. He said, "Interesting how the U.S. sells Taiwan billions of dollars of military equipment, but I should not accept a congratulatory call." Donald's top adviser Kellyanne Conway saying this.

(BEGIN VIDEO CLIP)

KELLYANNE CONWAY, TRUMP TOP ADVISER: And again, I can't discuss anything beyond what's been publicly said, and I won't do that. This is the president-elect, this will be he's administration, he'll be commander-in-chief, and he'll be President of the United States imminently now. And he either will disclose or not disclose the full contents of that conversation, but he's well-aware of what U.S. policy has been.

(END VIDEO CLIP)

SCHNEIDER: So, Donald Trump's transition team backing this call, defending this call. But many lawmakers, former ambassadors, a lot of people saying that this bucks tradition, this bucks protocol, and this could present a dangerous threat to the U.S. Martin and Christi?

SAVIDGE: Jessica Schneider there, thank you very much.

PAUL: We get more now on China's reaction, and the possible repercussions here, CNN's Steven Jiang, joining us live from Beijing. Give us some contexts here, Steven, because we did hear from China overnight. And part of what came specifically from their foreign ministry spokesman there, really stuck out - struck out - I think to both of us, stuck out to both of us. What did you take from what they said? Talk to us about the context of it.

STEVEN JIANG, CNN BEIJING SENIOR PRODUCER: Christi, I have to say the ministry's statement is relatively measured. I think the reason for that is China, like many other governments, is still trying to find out the true meaning of this controversial phone call. Was it just a blunder due to the Trump team's inexperience in foreign policy or was it something more significant, signaling a major policy shift by the incoming White House. And I think it's going to take them some time to find out. Now, interestingly, Chinese President Xi Jinping on Friday, met with Henry Kissinger, who of course, was a former U.S. Secretary of State who was instrumental in establishing diplomatic relations between Beijing and Washington back in the 1970s.

Mr. Xi actually told Mr. Kissinger, it is critically important for both sides - both sides to correctly understand each other's strategic intentions. And I think Mr. Xi must be wondering what Mr. Trump's intentions are by having this phone call. And he is also probably wondering if Mr. Trump is somebody he can trust and work with in the next four years. Christi?

PAUL: Well, part of the article, the statement that stuck out to me was, when they wrote, "I must point out that there is only one China in the world, and Taiwan is an inseparable part of the Chinese territory. The People's Republic of China is the sole legal government that represents China and that is an internationally recognized fact." That sounded as though he's just trying to remind not just the U.S. and this incoming administration, but the world, that look, this is how it is. And this phone call doesn't change anything?

[07:05:15] JIANG: That's right. The One China Policy as the Chinese Foreign Ministry has put it is the cornerstone of this diplomatic relationship. And - but both sides have deliberately less ambiguous in terms - in terms of how they interpret this policy. That's why the U.S. has been able to maintain unofficial relations with Taiwan, and able to sell arms to the island to defend itself against China. At the end of the day, I think China is still trying to give the Trump team the benefit of the doubt. That's why they're putting the blame on Taiwan, because I think Mr. Xi and his team realize this relationship between Washington and Beijing is just too important to be hijacked by any single issue. No issue of a global scale or importance can be resolved without some sort of consensus or cooperation between the two sides. That's why, you know, we are talking about the South China Sea territorial disputes, and North Korea and climate change, that's why, I think, the Chinese response so far has been measured and they're trying to walk a very fine line here, Christi.

PAUL: Steven Jiang, we appreciate it so much. Thank you, sir.

SAVIDGE: So, when is a phone call not really a phone call or something more? Let's talk more about this with CNN Politics Reporter Eugene Scott and the Reporter for Talking Points Memo Lauren Fox.

Eugene, let's - let me start with you. Trump tweeted out that the Taiwanese President called him. Though, of course, we're learning that you don't just sort of call Donald Trump on the - on the fly. This had to have in some way been coordinated. So, do you think that this is deliberate policy change here that we're seeing on the part of the Trump administration?

EUGENE SCOTT, CNN POLITICS REPORTER: I think what happened -- if is it true that the Taiwanese President called Donald Trump first is that they perhaps paid attention to how critical Donald Trump was of China throughout his campaign, promising to put tariffs on China, accusing the country of being a manipulator of its currency. And perhaps was hoping that there was a shoe and an opportunity for improved relationship with the United States, especially in the area of trade. And we saw yesterday that one of Trump's advisers on Chinese issues said they definitely think there is a way to have warmer relationships with Taiwan without compromising its relationship with Beijing. So, I think Taiwan, perhaps, wanted to take advantage of that opportunity.

SAVIDGE: Lauren, we know that Trump, you know, took a very hard line toward China during the campaign. In fact, here, here's an example.

(BEGIN VIDEO CLIP) DONALD TRUMP, PRESIDENT-ELECT OF THE UNITED STATES: Because we can't

continue to allow China to rape our country. And that's what they're doing. It's the greatest theft in the history of the world.

(END VIDEO CLIP)

SAVIDGE: So, after making a very strong statement like that, Lauren, he follows up with a phone call that he gets from Taiwan. You know, what kind of relations can we expect then between the U.S. and the Trump administration? Is this just the takes?

LAUREN FOX, POLITICAL REPORTER FOR TALKING POINTS MEMO: Well, I think that we don't know at the moment. That's sort of where we're at. And I think the one thing that we might see moving forward is that maybe some of the stuff Donald Trump said on the campaign trail, he really does plan to implement. And maybe one of those is the relationship with China, the stance that he will take against China. And maybe one of the sort of signals that he's sending is that he took this historic phone call, you know, something that hasn't been done over the last four decades.

And so, I think that there's a lot to be seen here. And I think there's some discussion of whether or not this was a mistake, whether, you know, he didn't understand sort of what he was doing, or whether or not this was very intentional. And it's possible, given his campaign rhetoric, that that's exactly what happened.

SAVIDGE: (INAUDIBLE) Eugene, it seems to have been pushing back last night. He tweeted saying this, quote, "Interesting how the U.S. sells Taiwan billions of dollars of military equipment, but I should not accept a congratulatory call." So, Eugene, the U.S. does have an informal economic relationship with Taiwan and does have a defensive relationship somewhat. What do you think of all of this?

SCOTT: I think Trump's tweet exemplifies the complexity of the One China Policy. The fact that it's really open to interpretation by multiple countries. At its core, it recognizes that there is just one China, but how one responds to that China varies depending on the democracy that we're speaking of, and how the U.S. has responded is while not having communication with the leaders of Taiwan, certainly, we've been at communication with the country economically when it comes to trade.

SAVIDGE: Uh-hmm. Eugene Scott, Lauren Fox, thank you, both, for joining us this morning. We weren't supposed to find out until next week, but here's how the crowd at Donald Trump's victory rally heard the news broken in front of them.

(BEGIN VIDEO CLIP)

[07:10:02] TRUMP: We are going to appoint "Mad Dog" Mattis as our Secretary of Defense.

(END VIDEO CLIP)

(COMMERCIAL BREAK) SAVIDGE: After President-elect Donald Trump confirmed his surprise

announcement of General James Mattis as his pick for Secretary of Defense, Ash Carter weighed in on Trump's selection to replace him. He said that the General - or General Mattis, rather, he holds him in the highest regard. Mattis also has been endorsed by former Secretary of Defense Robert Gates. He met with Trump yesterday at Trump tower.

(BEGIN VIDEO CLIP)

ROBERT GATES, FORMER SECRETARY OF DEFENSE: I told him, I thought his selection of General Mattis for the Secretary of Defense was terrific, very supportive.

(END VIDEO CLIP)

PAUL: But as CNN's Jim Sciutto shows us there are a few key differences in opinions between Trump and his Defense Secretary pick. Let's listen.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Christi and Martin, we're hearing a lot of positive reaction to the nomination of Mattis, this from both democrats and republicans, but also people in uniform. Some of whom were skeptical of Trump.

(BEGIN VIDEOTAPE)

TRUMP: We are going to appoint "Mad Dog" Mattis as our Secretary of Defense.

SCIUTTO: "Mad Dog", the nickname General James Mattis earned leading U.S. marines in the bloodiest battle of the Iraq war is Donald Trump's pick for Defense Secretary.

TRUMP: And he's our best. They say he's the closest thing to General George Patton that we have, and it's about time.

SCIUTTO: Mattis is a seasoned combat commander with 44 years of service in the Marine Corps, and key commands in both Afghanistan and Iraq where he led troops in the 2003 invasion and later for the battle for Fallujah.

JAMES MATTIS, U.S. MARINE CORPS GENERAL: The U.S. military is quite capable of giving our enemies their longest day and their worst day if ordered to do so.

[07:15:02] SCIUTTO: Since retiring as Cent Com Commander after disputes with the White House, Mattis has been critical of the Obama administration

JAMES MATTIS, RETIRED UNITED STATES MARINE CORPS GENERAL: The next president is going to inherit a mess.

SCIUTTO: Like Trump, Mattis is hawkish on Iran.

MATTIS: The Iranian regime, in my mind, is the single-most enduring threat to stability and peace in the Middle East. SCIUTTO: Still, Trump and Mattis disagree on several key foreign policy challenges. Trump has praised Russia.

TRUMP: Wouldn't it be nice if we actually did get along with Russia?

SCIUTTO: Mattis sees Russia and Putin as a threat.

MATTIS: Putin goes to bed at night, knowing he can break all the rules and the west will try to follow the rules. That is a very dangerous dichotomy.

SCIUTTO: Trump is in favor of bringing back the illegal practice of waterboarding terrorist.

TRUMP: I think waterboarding is fine.

SCIUTTO: Mattis opposes waterboarding. Trump telling The New York Times that during a meeting, Mattis told him it is ineffective.

TRUMP: I said, what do you think of waterboarding? He said, "I've never found it to be useful." He said, "I've always found, give me a pack of cigarettes and a couple of beers and I do better with that than I do with torture."

SCIUTTO: Mattis is highly respected up and down the military ranks. A marine's (INAUDIBLE) and also a voracious reader and deep military thinker.

JAMES "SPIDER" MARKS, UNITED STATES ARMY MAJOR GENERAL: Very dedicated, very focused and the smartest man in the room.

UNIDENTIFIED MALE: It carried around with him throughout his career a library of around 10,000 books and he's read most of them.

SCIUTTO: But his career has not been without controversy. In 2005, he came under fire for remarks in a panel discussion, which seemed to make light of killing in combat.

(END VIDEOTAPE)

SCIUTTO: Mattis's nomination would, however, face an immediate and significant legislative hurdle. Federal law requires the Pentagon be led by either civilian or a military veteran who has been out of uniform for at least seven years. Mattis has only been retired for three years, so congress would have to vote to give him a waiver. Christi and Martin?

PAUL: All right. Thank you so much, Jim. We want to talk about the voice of Mattis to bring to the Trump administration with our CNN Military Analyst Lieutenant General Mark Hertling, and he is the former Army Commanding General for Europe and the Seventh Army. General Hertling, it's so good to have you with us. Thank you so much.

MARK HERTLING, FORMER ARMY COMMANDING GENERAL FOR EUROPE AND SEVENTH ARMY: Good morning, Christi. PAUL: We heard there - good morning to you -- the praise that this

pick has brought forth, but how do you see -- you know, somebody who is in the military, how do you see Mattis influencing Trump's administration?

HERTLING: Very positively, Christi. He is a very mature and informed strategic thinker. He's not only a great tactical and operational battlefield commander, but this is an individual who is professional across the board, he is, you know, he has the nickname of "Mad dog" that everybody is touting, but that's something that the press gave him. I think he would be much more comfortable with something that he was called as a "four-star the warrior monk". He is a student of military history and strategy. He has commanded in all parts of the globe and he knows the world. So, I believe as a military - a former military guy, I would tell you that this is the right kind of person to have inside the National Security Council, as a key voice to balance some of the thoughts that Mr. Trump has already laid out.

PAUL: I was just going to ask you, we heard there from Jim that Russia, that waterboarding, two issues in particular that there is some disagreement on between President-elect Trump and General Mattis. How does Mattis deal with a situation like that, where there is a difference in the thought process, and what should happen going forward?

HERTLING: Well, typically, the numbers of the National Security Council and the primary's committee, the main group of people that surround the president when he's analyzing different courses of actions, Mattis and whoever will be the Secretary of State, will probably be the two key voices, the alpha dogs in the room. So, the influence that he's going to be able to give in these kind of deliberations, but also in terms of telling Mr. Trump, here are -- here is what the Department of Defense and the military forces can do, here's what they shouldn't do, and here are the courses of actions if you're asking me for options, that we're looking at. So those are very important things. So, he will give Mr. Trump a vision of the feasible and viable plans that Mr. Trump is asking him to execute, all in accordance with military and civilian ethos and the law.

PAUL: I want to read what one marine said of Mattis. It was originally in The Strategy Bridge and then pick up by The Federalist, but he wrote, "To Marines, he is the finest of our tribal elders. The rest of the world, very soon, will know how truly gifted he is. Our friends and allies will be happy he is our new secretary of war. Our enemies will soon wish he weren't." How do you talk to people who may be concerned -- what do you say to people may be concerned that being in that position, just with only three years in between, as we know, you know, Jim talked about how congress has to pass this to make it happen, to people who might have some concern about the safety of our troops and the missions that they will be on, and how aggressive the military may be in those missions?

[070:20:21] HERTLING: Yeah, well, the first thing I would tell them is the civilian control of the military is a process that General Mattis and all the rest of us believe in. That's the subordination of competent military to the ends of overall policy. So, when you're talking about National Security Policy, Joe Mattis, now Mr. Mattis, will give the input from just one of the four elements of national policy that's the military. But I'd also say, I'm personally happy about the fact that Mr. Trump has selected a retired general, because he will go into the Pentagon and understand the culture, and bring out the fact that of all the people who are war fighters, the people who have actually seen combat, and General Mattis has to a large degree, they are the ones who are least wanting to go to combat. So they offer - they offer the same approach saying, "Hey, look, we don't want to put America's sons and daughters into harm's way if we don't have to." So, that's why I think General Mattis will be a very seasoned and mature voice in the room. Perhaps a lot of other individuals who are going after courses of actions that are not either feasible or viable.

PAUL: All right, Lieutenant General Mark Hertling, always so good to have your voice here with us. Thank you.

HERTLING: Thank you, Christi.

SAVIDGE: As firefighters continue to battle those wildfires in Tennessee, some residents have had their opportunity to get their first look at their homes and what's left.

(COMMERCIAL BREAK)

[07:25:00] PAUL: 25 minutes past the hour, for the first time since destructive wildfires swept through Tennessee this week, there's some residents who are getting a chance to get back home. And for many, take a look at what they're seeing. Man, it's all that's left, a fireplace there. The wildfires around Gatlinburg damaged hundreds of structures, destroyed many you just see there, too, and at least 13 people have died here. That number could rise as well because firefighters are still searching through that rubble. Dozens of people are living in shelters now, and some victims who did lose nearly everything are trying to find all that positive amid so much destruction.

(BEGIN VIDEO CLIP)

LON WHITE, DISPLACED BY FIRE: It's a new start. It maybe that's -- something that everybody needed. I was talking to a woman while I was in church last night and we're all asking "Why? Why did this happen?" And her and I goes pretty much at the same time said, "because it brought everybody together from all walks of life. We're all in the same situation right now."

(END VIDEO CLIP)

PAUL: Oh, what a thoughtful response, isn't that, to donate to wildfire victims or find other ways that you can help because they do need it. Head to cnn.com/impact, and thank you for doing so.

SAVIDGE: A student is in custody after a University of Southern California Professor was killed on campus. Police say that the student attacked Professor Bosco Tjan with a knife yesterday. Detectives say that the suspect was arrested at the scene. The University's president says the professor was targeted, and there was no threat to the campus as a whole. A vigil is planned for that professor on Monday.

PAUL: Well, Donald Trump -

SAVIDGE: Donald Trump did save 800 Carrier jobs. He at least prevented them from moving to Mexico. But now, another company, Rexnord, is already - well it's in the process of closing shop. We'll tell you what Trump is saying about that, next.

(COMMERCIAL BREAK)

[07:30:45] PAUL: Well, we're here on Saturday morning waiting for you. Good morning, I'm Christi Paul.

SAVIDGE: And now you're here so we can begin. I'm Martin Savidge in for Victor Blackwell.

PAUL: Yes. Donald Trump scheduled to have a quiet weekend at Trump Tower. No meetings. No events a day after he set some alarm bells ringing in Washington because he took a call from Taiwan's president. Now that's the first known contact between a U.S. president or president-elect and the Taiwanese leader since the U.S. and China established diplomatic relations back in 1979. That one move could, some say, undo four decades of U.S. protocol in Taiwan and risk infuriating China over its One China -- One China policy, I should say. That, of course, claims that Taiwan is part of China.

Now Trump did tweet soon after all of this controversy started. And he said, quote, "Interesting how the U.S. sells Taiwan billions of dollars of military equipment. But I should not accept a congratulatory call," unquote.

Now China released this statement just this morning. "We urge the relevant side in the U.S. to adhere to the One China policy abide by the pledges in the three joint China-U.S. communiques and handle issues related to Taiwan carefully and properly," unquote.

SAVIDGE: You may have heard the dramatic news that Carrier is keeping about 800 jobs in Indiana. Thanks to Donald Trump. It had planned to send them all down to Mexico but other companies like Rexnord are still leaving for Mexico and Donald Trump tweeted this, quote, "Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers. This is happening all over our country. No more," exclamation point.

I spoke to some of the people who are being laid off by Rexnord. Here's what they had to say.

(BEGIN VIDEO CLIP)

SAVIDGE (voice-over): As they celebrated saving hundreds of jobs inside the Carrier plant, I sat at Josh Shartzer kitchen table. He's a long-time worker at a company down the street called Rexnord.

(On camera): Are you happy for them? JOSH SHARTZER, FORMER REXNORD EMPLOYEE: Yes, I'm totally psyched.

You know, and I'm happy for my community.

SAVIDGE (voice-over): Shartzer just wishes someone would save his job, too. That's because Rexnord announced six weeks ago, it was leaving, relocating its Indianapolis operation to Mexico, taking 300 well-paying jobs with it.

At the local union hall, John Felter remembers when the bad news broke.

JOHN FELTER, REXNORD EMPLOYEE: And he says we have a meeting at 2:30 on the back dock. Come to find out they actually split the plant. Half the plant went up to the front dock, the other half went to the back dock. And they just came out and said we're closing.

SAVIDGE: Rexnord has had a plant on the west side of Indianapolis since the 1950s. Don Zerring worked there for 43 years.

DON ZERRING, FORMER REXNORD EMPLOYEE: It's not 300, it's at least three to four people per family. You're talking 1200, 1500, 1800 people.

SAVIDGE: Ironically, Tim Mattis ended up at Rexnord after the last factory he was at closed.

TIM MATTIS, REXNORD EMPLOYEE: It's tough. It's rough. So, yes, I was actually hoping that I wouldn't have to go through it again.

SAVIDGE: Carrier had planned to phase its shutdown over three years. Rexnord workers say they have six months.

Now they watch President-elect Trump come to town and save Carrier. And they're happy.

MATTIS: We don't know the details yet.

SAVIDGE (on camera): But isn't there a part that says, what about me?

MATTIS: Sure. You bet there is. There's a part that says what about me?

SAVIDGE: Shartzer is married with six kids. They've already started cutting back and he thinks about all he missed working those 12-hour shifts to provide what he calls his nice Middle Class home.

SHARTZER: It's not anything to brag about but it's nice enough for us.

SAVIDGE: He started a college fund for his daughters, put some money into a retirement fund, and bought his wife their first new car, a minivan.

SHARTZER: My first payment was due that Friday they announced.

SAVIDGE: He's glad to hear about Carrier especially because he never thought it could happen.

(On camera): Does that give you hope?

SHARTZER: No, it's a different situation. It's --

SAVIDGE: How so?

SHARTZER: It's comparing apples to oranges.

SAVIDGE (voice-over): For starters, Rexnord wasn't a campaign issue. It's not a household name like Carrier and it doesn't have a parent company that does billions of dollars in Defense contracts.

[07:35:03] SHARTZER: We don't have a parent company that has 10 percent of their revenue in federal contracts.

SAVIDGE (on camera): Do you think that matters?

SHARTZER: Oh, yes, it matters. Yes.

SAVIDGE: Do you think it mattered in this case?

SHARTZER: Oh, yes, 100 percent.

(END VIDEOTAPE)

SAVIDGE: So the question now, is could Donald Trump -- was this just a one-off kind of thing or will he able to actually save any future jobs like Rexnord going somewhere else?

Let's bring in Eugene Scott, CNN Politics reporter, and Lauren Fox, political reporting for Talking Points Memo.

Eugene, CNN has learned now that Trump didn't actually save as many Carrier jobs as he claims. Explain.

EUGENE SCOTT, CNN POLITICS REPORTER: Yes, I think the Trump campaign put out that they saved about 1100 jobs but the accurate number is closer to 800. And I know that may seem minor to some readers and viewers. But the reality is that 300 of those jobs that were accounted for weren't even part of the plan to move to Mexico. And I think perhaps what's more important is that Carrier will actually still move about 600 jobs to Mexico.

SAVIDGE: Right. It's true. There is a whole separate division they plan to move. But 800 jobs is still -- that is say dramatic turnaround from every job going away. Just really was quite shocking to the -- pleasantly so shocking to everyone there.

The incentives that Trump gave Carrier, will they be able to give those similar incentives to other companies that are planning to move out of the country? Because I would imagine now that you're going to have a lot of these countries that -- or companies, rather, they're going to say, all right, I won't move if -- Lauren, what do you think?

LAUREN FOX, POLITICAL REPORTER, TALKING POINTS MEMO: Well, I think that's one of the major concerns. And that is sort of one of the alarm bills that went off after the deal was announced, you know, $7 million in tax breaks is a huge insensitive. And that is also tax revenue that's not coming into the state. That's tax revenue that's not going to schools, tax revenue that's not going into building infrastructure in the state. So I think that that is certainly a concern. I mean, can you -- is this going to be used as a tactic by companies in every state across America in order to sort of, you know, stop them from moving abroad? And sort of what is the, you know, unintended consequence of that? Obviously, this is something that can't be done and replicated every single time.

SAVIDGE: Although, Eugene, you got Trump who tweets and he mentions Rexnord now specifically by name. So he's sort of saying, I got you guys under my radar here. If you're the CEO and you're thinking of moving, does that worry you? Are you now saying, maybe we ought to rethink this?

SCOTT: Well, I think if you're the CEO, you're open to conversations with Donald Trump to see what would happen that would encourage you to stay. I think it's really important, though, to Lauren's point that there was -- this may not be able to be replicated in every state. We have -- Carrier was a really unique situation. In addition to being in Indiana which is where the vice president-elect is still governor, you have that relationship there, Carrier is owned by United Technologies which is an organization that Donald Trump invested in. And so important whether or not these things can be replicated for other companies, even in the state or outside, just isn't really clear right now.

SAVIDGE: It was suggested by Carrier, Lauren, that they were going to save about $65 million a year by moving to Mexico. Primarily because they were going to be paying wages far lower than what they have to pay in the United States. How do you compete with that? I mean, what does Trump have to offer that sort of offsets that kind of savings?

FOX: Well, that's certainly kind of what this whole campaign was about and what Trump might be up against in sort of making good on all of those promises. Obviously here Carrier was a unique situation, whether or not he is able to replicate that. I think it's going to be difficult because like you said we're not talking about just a couple millions in tax breaks. They're going to save, you know, five times that much. Six, 10 times that much if they move, you know, jobs overseas.

I think maybe what Trump might be trying to do is pressure companies by tweeting about them, by making it public, you know, that these companies can't just move and it just affects a small community. Now the entire maybe United States is paying attention to this. I think that that's maybe what Trump is trying to do. It's difficult to say for sure.

SAVIDGE: He did in his speech that he gave at Carrier on Thursday said, you know, companies can no longer move to Mexico without consequences. So I imagine they heard it loud and clear.

Eugene Scott and Lauren Fox, thank you both for joining us this morning.

SCOTT: Thank you.

FOX: Thank you. I appreciate it.

PAUL: A near mistrial in a controversial murder trial. And it could still be a mistrial at the end of the day. A jury is deadlocked this morning in the case of a former South Carolina cop accused of gunning down a black man. Why at least one juror is refusing a conviction?

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

[07:43:05] L. CHRIS STEWART. SCOTT FAMILY ATTORNEY: And the one juror that's holding out will reflect, pray, look at the facts, look at all the evidence that we heard that was overwhelming. And we believe that he'll see the light. And we believe that justice will be here on Monday.

(END VIDEO CLIP)

SAVIDGE: Deliberations in the murder of a black man, shot and killed by a former Charleston, South Carolina, police officer. They're going to continue on Monday after the jury told the judge that it could not come to a unanimous decision.

PAUL: Michael Slager, of course, is on trial for killing Walter Scott. But one juror is refusing to vote in favor of a conviction, writing a note to the judge saying, quote, "I will not change my mind," unquote. Now authorities say Slager initially pulled Scott over for a tail light violation back in April when they say Scott bolted from his car and here's the cell phone video from that scene. Because it's so graphic we stopped it just before Slager actually shoots Scott.

But prosecutors have argued that Slager told investigators -- what he told them just doesn't match up for the video that we see here. Slager maintains that he feared for his life in that moment.

Laura Coates, CNN legal analyst and former federal prosecutor with us now. Laura, thank you for sticking around here.

LAURA COATES, CNN LEGAL ANALYST: Good morning.

PAUL: Good morning to you. First of all, so yesterday, they -- are near a mistrial. They are coming back on Monday. They have 48 hours essentially to go home, to deal with everything that they've seen, maybe get back into their normal lives, if they can. How much will these next 48 hours save what could happen Monday morning?

COATES: Well, it's going to be critical, not for the 11 jurors who already having a decisive decision in terms of giving a conviction. But it may prove critical to the one holdout juror who has said that he feels he cannot in good conscience consider a guilty verdict given the options that he has and he feels there's reasonable doubt there. So it may -- it may lead to him changing his mind. But I think it will have a very little impact on the other 11 jurors.

[07:45:02] What it could do, though, in terms of community relations, it kind of quell the idea that there will be an immediate reaction, a visceral reaction to the possibility of a mistrial. And it gives the community members time to kind of reflect on the fact that this is a real possibility and figure out where to go from here.

PAUL: You know, a lot of people have watched that video and they don't understand how it's not a conviction. But this is due process. This is people come to the table with different thoughts, with different experiences. But when this juror says that he -- there is still some reasonable doubt here despite that video that so many people thought would just be cut and dried in this case, what do you see might be some of his trepidations?

COATES: Well, you know, I'm one of the people who looks at it and says --

PAUL: Yes.

COATES: This is a clear case, there should be a unanimous conviction. But I will say this, reasonable doubt is something that every prosecutor dreads and every defense attorney clings to as a possibility. It only takes one person on a jury to be able to say, listen, there may not be enough evidence for me beyond a reasonable doubt besides this person's guilty. But remember, the doubt has to be reasonable. Not beyond all scintilla of evidence of guilt but it has to be beyond a reasonable doubt.

But the prosecutor's decision in this case to allow the jury to reflect and consider both a manslaughter charge and a murder charge I think may have signaled to the juror that there was doubt about whether this was pre-meditated, whether there was malice, and whether this is the officer who may in fact have deserved the penalty that he is facing.

I think that strategic decision may have contributed to this juror feeling like his hands were tied. Having said that, I don't think that any reasonable juror could look at this video tape and hear the testimony of the officer and find that there is something that -- you know, any questions that are unanswered. But you're right. A justice system requires unanimity. And that's a good thing. And if this case ends up where you have 11-1 in a mistrial, the prosecutor could bring the case again. But we cannot, cannot allow people to say, well, one person's holdout -- transformed the whole system.

PAUL: All right. Laura Coates, thank you so much for breaking it down for us.

COATES: Thank you.

PAUL: Good to have you here.

SAVIDGE: Next, the fairytale that came to a very tragic end. We're going to take you live to Brazil where a massive memorial is planned for the soccer team that was killed in a plane crash. (COMMERCIAL BREAK)

[07:51:12] PAUL: All right. Brazil is honoring the members of the Cinderella soccer team that were killed in that just horrific crash earlier this week.

SAVIDGE: Military planes carrying the bodies of the plane crash victims have arrived in the stadium and there's a memorial that will be taking place. The plane crashed into a mountain just moments before it was supposed to land, killing 71 people on board.

PAUL: The video you're seeing here is just from a short time ago when those caskets were being carried out of the plane.

SAVIDGE: Our Don Riddell is live there at a memorial service that is being held there today.

Don, what can you tell us?

DON RIDDELL, CNN CORRESPONDENT: As you can imagine, it's an incredibly emotional day. The weather here is also not cooperating. The rain is absolutely torrential here.

We are live inside the stadium in Chapeco, the football team Chapecoense has just suffered the most devastating loss this week in that plane crash. Of course, they were traveling to play in what was undoubtedly going to be the biggest game in the history of this football team. The finals of the Copa Sul-Americana is one of the biggest football competitions in the continent of South America. And of course they never got to play that game.

And many of their players are never coming home. 38 people from this football club were killed, 18 players. And this, despite the fact that this was a successful team, is actually a very small team. It's a small town, some 200,000 people here, and so it has just ripped the heart out of this club and of this community. It has been a devastating week. And I think for many of the supporters it's only really now that the reality is kicking in because as we speak the players have been flown back to their local airport to pick over just a few miles away from here.

And the hearse and the caskets are being unloaded from those C-130 military transport planes. And as they're brought off individually, this crowd has been quietly applauding every single casket and there are dozens and dozens of them.

Another round of applause now as these caskets begin to make their way, the short distance to the stadium. And when they get here, it will take another couple of hours, I would imagine. The caskets are going to be brought to the field and laid out in this tented area just behind me. I mean, absolutely extraordinary scene. Unprecedented, I would say. And it really is hard to find the words to describe the grief and the emotion here.

I mentioned the rain at the start. People are out here getting absolutely soaked. I will say this, they don't seem to mind. They do say that Chapecoense always played best in the rain.

SAVIDGE: Don, a question for you, there are survivors of this crash. Do we know how they are?

All right, Don. Apparently he can't hear me. Don Riddell, thank you very much. Very moving, moving ceremony from a horrific crash and what it has meant to an entire town.

PAUL: And relating the rain there now to how they played, that was something.

SAVIDGE: So poignant.

PAUL: All right. Some people asking this morning, can a single phone call undo diplomatic relations spanning five U.S. administrations? There are critics this morning concerned that President-elect Trump's discussion with Taiwan's leader could cause some problems with China.

SAVIDGE: Plus a year after the attack in San Bernardino, survivors talk to CNN about the struggles they are still facing.

(BEGIN VIDEO CLIP)

STEPHANIE ELAM, CNN CORRESPONDENT: Any restaurant you go into, you look for the exits?

UNIDENTIFIED FEMALE: Yes.

[07:55:03] ELAM: Do you look for kind of escape routes?

UNIDENTIFIED FEMALE: What would you do in that situation?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PAUL: A somber anniversary in San Bernardino, California, one year ago yesterday, what was supposed to be an office holiday party turned into something far more sinister. A husband and wife opened fire, killing 14 people and injuring 21 others.

SAVIDGE: Investigators believe that the attackers sympathized with ISIS. They fled the scene. They were later killed in a shootout with police.

CNN's Stephanie Elam spoke with some of the survivors of the attack about their memories of the day and their struggle to move on.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: It was a good day. I mean, to begin with, it was a good day. And I think just laying there and wondering if this was it. Now honestly just laying there after I was shot and just thinking, is this how my life is ending -- is going to end?

ELAM: And in that moment you have the presence of mind to text your family.

UNIDENTIFIED FEMALE: I did. Because I thought if this is the end, I want to say at least I love them. If it's not the end, I want them to know I was shot but I just remember laying there thinking, is this how my life is going to end?

UNIDENTIFIED FEMALE: He didn't come in there to shoot me. He didn't come in there to shoot Julie or Hal. He was -- had some mental health issues and some maybe religious ideologies. But he -- it wasn't any for us personally. It wasn't personal. He was trying to make a statement.

(END VIDEO CLIP)

SAVIDGE: The city of San Bernardino held a series of memorials for the victims yesterday, including a night of remembrance which you're looking at there.

PAUL: All right. Stay with us. We are heading into the political arena with you as well as the courtroom.