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Trump's Comments at Lavish New Year's Party Caught on Tape; Trump Threatens N. Korea on Nukes: "It Won't Happen"; Obama Defends Legacy on Twitter as Presidency Ends; Trump Criticizes Chicago Mayor Over Rise in Homicides. Aired 7-8p ET

Aired January 2, 2017 - 19:00   ET


ERIN BURNETT, CNN ANCHOR: OUTFRONT next, the breaking news, U.S. Intelligence officials with new evidence pointing directly to the Russians in the U.S. Election hack as even as Trump continues to discredit their findings. Plus more breaking news. Trump threatening North Korea tweeting it won't happen after Kim Jong-Un says, you'll have a new (INAUDIBLE) the United States. And Mariah Carey making it a New Year's celebration to remember.

What caused the epic melt down? Let's go OUTFRONT. And good evening. I'm Erin Burnett. OUTFRONT tonight, the breaking news, fingerprints. CNN learning that U.S. Intelligence officials have traced the computer hack of U.S. Election back to specific keyboards--specific keyboards. Keyboards that used Cyrillic script which is the alphabet used by Russians.

That evidence adding to the Intel communities growing confidence that Russian operatives are behind the hack. Donald Trump though insists he knows things that other people don't know about the attack. He says he is promising to share more information this week with the American people. Sean Spicer, Trump's speaker secretary telling CNN it is too early for Trump to make a decision about possible Russian involvement saying Trump hasn't been briefed on the subject by intelligence officials.

SEAN SPICER, CHIEF STRATEGIST AND COMMUNICATIONS DIRECTOR, RNC: No. They are coming in later this week to do that. And so the idea that you are asking me--and neither is the president of the United States frankly because the report isn't final. So the idea that you're asking anybody what the--what the reaction should be to a non-final report is unbelievable.

BURNETT: Pam Brown begins our coverage OUTFRONT tonight. And Pam, I mean, this is pretty incredible, right? So they have now found, you know, at first Trump saying, where is the proof, where is the proof? So they're now saying according to your sources, we've got the keyboard. The keyboards used the Cyrillic script. I mean, that's getting incredibly definitive.

PAMELA BROWN, CCN JUSTICE CORRESPONDENT: There are a number of factors and we're learning tonight, Erin, that analysts used special technology to trace specific keyboards used in the hack to Russians bolstering confidence that Russia is the culprit behind the elections hacks. This is President-elect Trump continues to cast doubt on that assessment. President-elect Donald Trump rang in the New Year still casting doubt on U.S. Intelligence community's assessment that Russia was behind the unprecedented attack of the U.S. Election system.

DONALD TRUMP, PRESIDENT-ELECT: I know a lot about hacking. And hacking is a very hard thing to prove. So it could be somebody else. And I also know things that other people don't know, and so they cannot be sure of the situation.

BROWN: As to describe what undisclosed information he had access to Trump promised to reveal it soon.

TRUMP: You'll find out on Tuesday or Wednesday.

BROWN: And he said the field intelligence leading up to the Iraq war makes him skeptical.

TRUMP: I just want them to be sure because it is a pretty serious charge and I want them to be sure. And if you look at the weapons of mass destruction, that was a disaster and they were wrong.

BROWN: Trump's incoming press secretary Sean Spicer defended the President-elect's stance.

SPICER: The idea that we are jumping to conclusions before we have a final report is frankly irresponsible.

BROWN: CNN has learned the intelligence community traced the hack back to specific keyboards with the Cyrillic text. An alphabet used by Russians adding to U.S. Intelligence officials' confidence Russia carried out the hack. Last week, the FBI, DHS, put out this report naming the Russian hacking operation Grizzly Steppe and calling out two Russian intelligence service groups for, "The intrusion into a U.S. Political party."


BROWN: Senator John McCain traveling this week with other senators in the Baltic region where countries are most worried about Russia's aggression said there is no doubt Moscow is the culprit.

SENATOR JOHN MCCAIN (R), ARIZONA: It is clear that Russia has attacked the United States of America. All of our intelligence agencies will affirm that that being the case. We will work in the congress to have stronger sanctions in order to prevent further attacks on the United States of America.

BROWN: And while we await that comprehensive intelligence review of the election hack that was ordered by President Obama, we are told by officials that part of the reason the intelligence community is so confident about its assessment is because of the high-quality intelligence it has on Russia compared to other cyber hacks involving countries like North Korea. Erin?

BURNETT: All right. Pam, thank you very much. And now, you know, Trump has come out and said that he knows something that the rest of us does--don't. And that he may tell us about it in the next couple of days regarding this. According to one of his advisers though, he may just be saying that for attention. Jim Sciutto spoke today with the former CIA Director James Woolsey.

JIM SCIUTTO, CNN CORRESPONDENT: Do you think he's playing us an effect?

JAMES WOOLSEY, FORMER CIA DIRECTOR: I--there is a possibility that he is a little bit. Yes.

SCIUTTO: What does that--

BURNETT: Jim joins me now. And Jim, you know, Trump has come out and said, "I know something. I'm going to tell you what it is." Could he be playing us off?

SCIUTTO: Well, it's pretty remarkable admission from one of Trump's own advisers there, James Woolsey who was a former director of CIA himself. The thing is, over the course of--just the last week, I've talked to half a dozen different Trump surrogates and supporters on the issue of hacking and I have gotten at least half a dozen different explanations as to why they don't believe it. The newest one over the weekend was Trump saying he had new information but you heard Sean Spicer walk that back. But here you have a Trump adviser saying, "Well, in reality what Trump is doing in the air is misdirection in effect on this."

And even the questions of waiting for this comprehensive review, keep in mind that the President Obama who ordered that review. The intelligence community has already made its assessment. So the question for the Trump campaign is will they then accept president Obama's review when that's made in public? We'll see.

BURNETT: Right, right. As you point out. Highly unlikely that he would accept the president's view as supposed to intelligence community but I suppose he could. All right. James Sciutto. Thank you very much. I want to go to straight tonight to the republican senator James Lankford who is a member of the intelligence community.

And Senator, I appreciate your time. You know, you hear Trump. He says he knows things that, "Other people don't know about the hacking of the U.S. Election," and you just heard James Woolsey saying, possibly Trump is playing us all. Look, you, Senator, are on the intelligence committee. You know everything there is to know about this from the intelligence agencies.

Do you think Trump truly could know something that you don't or is he playing us all?

SENATOR JAMES LANKFORD (R), OKLAHOMA: Yes. We--I really don't know obviously. We'll see when that information comes out. The Russians have been engaged in hacking for elections and trying to manipulate elections all over Europe and all over Asia, all over their neighbors. This has been something they've done and it's been their mode for a very long time. They just haven't engaged in this type of level in the United States. BURNETT: So you're leaving open the door that you think he could know something or is your gut that he is sort of just saying all of this?

LANKFORD: No. We're going to wait and see what this is. I mean, he can come out on Tuesday and Wednesday and give chance to resent that out but at this point I want to just wait and see what it is. This is a long standing investigation. As you have mentioned multiple times before this is not a new investigation, it's not something that's about to start, it's something we've done for months and months.

House intelligence, senate intelligence had both been very engaged in this for a long time. We want to get a chance to finish this and be able to see President Obama's report plus the reports we'll do as well.

BURNETT: OK. And of course the intelligence community has come out with their assessment, right? And as you just heard, Pam report they are now saying they have actually tracked some of this hacking back to specific keyboards that use Cyrillic text Of course, Russia one of the--of course, the biggest and most important countries that use that--uses that text. The conclusion of the intelligence community is unequivocal at this point. They say Russia is responsible.

You heard Sean Spicer though depends Trump's position. His view is anyone who is definitively blaming Russia at this point is irresponsible because there is no final report. I don't know if he is waiting for the president's report or what specifically. You, of course, have said you believed the intelligence assessment. I mean, he--are you irresponsible then to do so?

LANKFORD: I do believe the intelligence assessment. The difficulty of this is there is a different statement between doing it with sanctions and saying this looks like it was done in a Russian computer, this looks like it was done in a Russian intelligence agency and trying to actually pin point who it was, how it was done. For instance, the FBI has not pressed for criminal charges on individuals. That's when they have hard and fast very solid evidence to say we know who it was, we know where it was, where know how it was done and we're going to actually do criminal charges on them.

That has not been done at this point. It has been a "This looks like this is Russia". This has all the earmarks of Russia."

BURNETT: And you believe it is. And therefore you believe it is, right? Because you trust the intelligence.

LANKFORD: I believe it is. I don't--I don't have any doubt that it is from Russia. This meets the mode that they do all over the world and all over the region already.

BURNETT: And you talk about the lack of criminal charges. I mean, of course, we do have as you know and our viewers know President Obama came out with new sanctions on some specific individuals that he says were involved, expose and kicking out 35 Russian diplomats from his country. Vladimir Putin of course has decided to not retaliate in kind saying he's waiting for Donald Trump. Did president Obama do the right thing or was that premature?

LANKFORD: No, I don't think it's--I don't think it's premature. In fact, I think it was late. One of the main gripes that we've had in both house and senate Intel and it's a by part as an issue is there is not a clear cyber response strategy that's sitting out there. We've had multiple hacks for a very long time from multiple different countries and so it is important that we have a consistent doctrine that if someone reaches in and attacks our infrastructure, attacks any part of our government that we have a way that we know to respond.

It's a kind of an ad hoc, you know, go along and try to figure it out as we go. Last July, we had American diplomats that were roughed up at the Russian embassy or at the American embassy in Moscow. We had no response. The president said part of this response kicking out some diplomats was related to what happened in July. That's too late.

If they are going to rough up some of our diplomats which is what they did in Moscow then we need to have an immediate response to that. The same with cyber. There needs be an immediate response to these issues and it needs to be consistence.

BURNETT: So, are you concerned then with what--you are saying not only do you think Obama did the right thing but your criticism is that he should have done it much, much sooner, right?

LANKFORD: Yes. Yes. It's a long time ago. And even the sanctions he sanctioned basically the Russian intelligence operation and the heads of Russian intelligence. This is no secret. These are individuals we already know that are actively trying to engage in intelligence on the United States. So this is not even connected necessarily to the hacking. This is intelligence operations from Russia.

BURNETT: So, Senator, are you concerned about Trump's response because Trump's response is completely the opposite, right? He is obviously proud that Vladimir Putin decided not to retaliate in kind by kicking out American diplomats from Russia. He tweeted about it. "Great move on the delay by V. Putin. I always knew he was very smart." As you know he continually has complimented Vladimir Putin. Does this concern you?

LANKFORD: It does concern me only in the sense that I don't have that level of trust for Vladimir Putin. I think Vladimir Putin is going to do what's best for him and for Russia. I think we should do what's best for the United States on this. Vladimir Putin and the Russians have been very engaged in trying to undercut democracies all over the region. That is not someone that we should have as long-term ally. Now there will be areas that we will try to cooperate together or whether being trade in other areas like we do in multiple other counties but that is not someone that acts in a human rights way that we should continue to partner up with.

BURNETT: All right. Senator, I appreciate your time tonight. Thank you.

LANKFORD: Thank you. BURNETT: And next, Bruce Springsteen on the attack. Way to hear what he is saying tonight about Donald Trump. Plus, the breaking news, Trump threatening North Korea at this hour. Kim Jong-Un says he's going to have a nuclear weapon capable of hitting the United States. Trump perhaps threatening the preemptive strike.

And Mariah Carey's Times Square meltdown not exactly how she planned to kick off the New Year.


BURNETT: New tonight, President-elect Donald Trump pushing back against reports that he thought he lose the election, Trump tweeting, "Various media outlets and pundits say that I thought I was going to lose the election. Wrong. It all came together in the last week and I thought and felt I would win big, easily over the fabled 270 when they cancelled fireworks, they knew and so did I." Trump continued on Twitter, stating, "When they cancelled fireworks, they knew, and so did I." Of course, this comes after Trump spent days calling out President Obama for saying he would have beaten Trump. So much for a calm transition. Michelle Kosinski is OUTFRONT.

MICHELLE KOSINSKI, CNN CORRESPONDENT: President Obama with only days remaining in office looking to preserve his legacy in any way possible taking to YES Twitter while on vacation and out of sight to defend his work on job creation, healthcare and energy. This week he'll head to Capitol Hill to meet with democrats trying to protect at least parts of Obamacare.


KOSINSKI: At virtually the same time Vice President-elect Mike Pence will be meeting with republicans on repealing it. It was only weeks ago that first face-to-face meeting show a good will --

OBAMA: Well, I just had the opportunity to have an excellent conversation with President-elect Trump.

TRUMP: I very much look forward to dealing with the president in the future.

KOSINSKI: It didn't take long for the winds of politics carrying plenty of thorns to blow straight from the campaign trail into this transition.

OBAMA: Ronald Reagan would roll over in his grave.

KOSINSKI: Just in the last few days president Obama saying he thinks he would have beaten Donald Trump in the election. Trump responding by tweet, he thinks he would have against me, he should say that but I say no way. And another one, doing my best to disregard the many inflammatory president O statements and road blocks. I thought it was going to be a smooth transition, not--

MICHELLE OBAMA, FIRST LADY: Because he thought--

KOSINSKI: We heard from the first lady.

OBAMA: We're feeling what not having hope feels like.

KOSINSKI: We've seen top democrats blast the head of the FBI over the e-mail investigation. Obama administration standing by its expressions of deep concern and believe that Donald Trump is unqualified hitting his campaign picks, excoriating the Trump team for denials and doubts that Russia hacked democratic websites trying to influence the election.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: The Republican nominee for president was encouraging Russia to hack his opponent, because he believed that would help his campaign.

TRUMP: Make America great again.

KOSINSKI: Despite this very public clashes Trump speaks of a, quote, good relationship with the outgoing president whose legacy is already under fierce attack. The two spoke again by phone Friday.

TRUMP: I'm getting along very well other than a couple of statements that I responded to and we talked about it and smiled about it.

KOSINSKI: So, yes. This is a white house winding down. But it's very clear they're trying to get in as much as possible. I mean, in a short amount of time, we have seen President Obama sanction Russia, take various executive action, ban some offshore drilling, transfer prisoners from Guantanamo and commute many hundreds of drug sentences with likely more of this action to come. Also we're going to hear him talk in his own words about his own legacy when he gives the farewell speech in Chicago, Erin.

BURNETT: Right, right. All right. Thank you very much, Michelle. And OUTFRONT now, the host Ben Ferguson show, Ben Ferguson and former Clinton White House aide, Keith Boykin, he's a regular on the show and as of tonight, a new CNN political commentator. Welcome to the family, Keith. We appreciate it. So let me start with you. President Obama going to head to Capitol Hill this week on Wednesday to meet with democrats and the whole goal here is how they can stop this repeal of Obamacare, right? How they can block it. That is the goal. This is an aggressive play to block his successor from carrying out a core campaign promise. Is Barack Obama going too far?

KEITH BOYKIN, CNN POLITICAL COMMENTATOR: No. I don't think he is going too far. I think this is a standard move for any president in a situation where you are being followed by a successor who has threatened not only to repeal your signature piece of legislation but has threatened to upend the basic norms of decency in government. And I think President Obama is wise to take these measures. I think that we are going to see a great deal of resistance on the part of a lot of democrats in the next four years or longer if necessary to fight against any sort of encroachment to the constitution in violation of law that might be coming as a result of the Trump administration. So, I think this is an appropriate first step for the president as he goes out of office and moves into his transition as a private citizen.

BURNETT: Appropriate and wise then?

BEN FERGUSON, CNN POLITICAL COMMENTATOR: I don't think it is appropriate. I also don't think that it's wise either. There are many parts of Obamacare that have been failures and that's one reason why Hillary Clinton lost this election. This was a major issue for many Americans who've forced into exchanges and they have seen not only their doctors disappear but they've also seen premiums sky rocket, they've seen their choices even for coverage disappear.

We only had one choice for my family this year. It was a bronze plan. There wasn't a silver plan, there wasn't a gold plan and our family would be up $13300 before any insurance would kick in. And that was the only option on the Obama plan on their website. So, for him to somehow come in and say I got to save this now is just tone deaf. There are people that like certain things about Obamacare. I am in favor and many republicans are in favor of saving parts of it.

One of it is those would be those preexisting conditions. But what President Obama is doing is he's putting his own name and legacy about this bill in front of what actually the American people need. It needs to be overhauled, it doesn't need to be saved and it's lost-- people have lost faith in the system.

BURNETT: Now, one small part of this--you talk about Obamacare, right? This country is incredibly split on it. People who think it needs to go farther towards that universal care and trying sort of what people who think that it goes too far. But those people who like Obamacare or think it needs to go farther are people who are scared of Donald Trump. Then Bruce Springsteen is one of them.

He performed obviously at President Obama's inauguration. Campaigned for him and Hillary Clinton. He is speaking out today and of course he's got that best-selling book. A lot of people are listening of what he's having to say, he was on a podcast with the comedian Marc Maron. Here is what he said.


BRUCE SPRINGSTEEN, AMERICAN SINGER-SONGWRITER: I felt disgusted before but never the kind of fear you feel now. It's as simple as the fear of, is someone simply competent enough to do this particular job. Forget about--where they are ideologically. Do they simply have the pure competence to be put in the position of such responsibility?


BURNETT: And you're talking about disgust and fear regarding Donald Trump but questioning the issue of pure competence. Does he have a point?

FERGUSON: I'll take Bruce Springsteen and ask him to throw his resume on the table next to Donald Trump let's compare degrees and see who has a higher level of education. And then whoever doesn't have a bigger set of degrees gets to shut up and eat their own words. I mean, this is nothing but-- BOYKIN: OK. Ben, if you're going to go by that logic, then you should shut up because I have a bigger--higher degree than you do. That's just--that's just foolish.

FERGUSON: No, my point is for him to say--for him to--no, for him to say--

BOYKIN: You know--

FERGUSON: --let me finish, let me finish, let me finish.

BOYKIN: Your point--your point is to dismiss what he just said.

FERGUSON: Let me finish. You have--no, Bruce Springsteen is a guy that's really good at music. Stick to it. And when you don't get your way, respect the will of the American people. This is what the left does, they say, be tolerant of my ideas but they're completely intolerant to them losing. And when they lose they act like crybabies and think everybody else is stupid and they are smart.

BURNETT: Go ahead, Keith.

BOYKIN: OK, Ben. Ben, you know what, this is the President-elect of the United States here we are talking about. He is not competent. He was a reality television star before he was elected. He has no experience in government. He's appointed people who have no experience in government, he is not going to intelligence briefings.

He is showing no interest in the basic workings of government. He thinks he knows more than the generals. He is a guy who has the potential to disrupt the norms of political discourse in the--in the country and disrupt the political establishment in the country in a negative way. Even Mitt Romney said just a few months ago that Donald Trump is a--is a conman, a phony and a fraud. I think the American people will start to see that after January 20th because he doesn't have the (INAUDIBLE) experience to do the job.

FERGUSON: He won--he won the election.

BURNETT: Did Bruce Springsteen go too far, you know, using words like disgust and fear?

BOYKIN: No, no. No. There are a lot of people who are fearful about Donald Trump and a lot of people who are disgusted and Bruce Springsteen is a private citizen, he has a right to say whatever he wants. But the reality is that Donald Trump is behaving like a child. He is behaving like a mentally unstable child right now. And I think that that's a very dangerous situation for our country.

FERGUSON: And Bruce--and Bruce Springsteen is acting like an adult?

BURNETT: So Ben--so Ben, let me just ask you this point--on this point--

BOYKIN: Donald Trump is the President-elect of the United States and he's posting tweets about North Korea threatening a nuclear war. BURNETT: So, hold on. I want to ask to this point about the tweets. Different tweet, we are talking about that later in the show. But Ben, Trump over the New Year, Happy New Year to all including to many enemies and those who have fought me and lost so badly, they don't know what to do. Love. Exclamation point. One could laugh at that, one could also say, really? Even on New Year, you couldn't just say Happy New Years, everybody? Is that petty?

FERGUSON: Because when you have--when you have people that are coming after you in this way, Bruce Springsteen or every other liberal that lost this election that has no respect for the fact that the American people chose someone that they didn't like. It doesn't mean that everyone that voted for Donald Trump is ignorant or stupid or a racist or a bigot or a dumb or incompetent. And that's what--that's the reason democrats really need to look at this. Walk away from this for a moment and look at why you lost.

It's because you basically looked at half the American people and said you guys are idiots if you don't do what I tell you to do. So when Donald Trump tweets that I'm fine with it right now.

BOYKIN: Let me just say this.

BURNETT: All right. I will leave it there--I will leave it there tonight. Thank you both. You'll be back tomorrow.

FERGUSON: Thank you.

BURNETT: And tonight, Fareed Zakaria is talking with President Obama about triumphs and struggles during his time in the White House. That's our CNN special report. The legacy of Barack Obama tonight at 10:00. And next, Donald Trump calling out the Mayor of Chicago, Rahm Emanuel obviously of Obama thing over Chicago's epidemic of gun murders. Will Trump send in the feds?

And breaking news, Trump caught on tape at his New Year's party. We got that tape tonight.


TRUMP: I want to thank my members. I don't really care too much about their guests because the ones I really care about members. I don't give a (bleep) about their guests.


BURNETT: New tonight, President-elect Donald Trump going after the mayor of Chicago, Rahm Emanuel because of Chicago's crime rate homicides reportedly up 60 percent last year. It's a stunning and horrible statistic and Trump suggesting it may be time for federal government to step into Chicago. Tweeting today, Chicago murder rate is record-setting, 4331 shooting victims with 762 murders in 2016. If mayor can't do it, he must ask for federal' help. Jessica Schneider. Jessica, pretty stunning back and forth between the President-elect and Rahm Emanuel, Mayor of Chicago and of course former chief of staff for President Obama, what's been the response to tweets? [19:30:01] JESSICA SCHNEIDER, CNN CORRESPONDENT: Well, the mayor of Chicago, Rahm Emanuel, is essentially putting up a challenge to Trump's tweet tonight. The mayor's office in Chicago putting out this statement, I'll read it for you.

"We agree the federal government has a strong role to play in public. We are heartened he is taking the issue seriously and look forward to working with the new administration on these important efforts."

Rahm Emanuel's office went on to say and ask the Trump administration to actually fund some summer jobs for at-risk youth and then put up a challenge to the Trump team to work to pass what they call meaningful gun control regulation.

The Trump transition team has not yet responded to the statement from the mayor. But, of course, on the campaign trail, Donald Trump repeatedly talked about the rising crime numbers in Chicago, even saying that stop and frisk should be put into place to address some of the issues.

And all of these staggering statistics out of Chicago come at a time when President Obama plans to go back to his hometown. He will be back in Chicago on Tuesday for that farewell address -- Erin.

BURNETT: All right. Thank you very much, Jessica.

OUTFRONT now, Paul Martin, criminal defense department. Darrin Porcher, retired NYPD lieutenant.

Darrin, Trump has often said that police are afraid to do their jobs because they don't want to be accused of racial profiling, right? Because the tape could get out and all of a sudden, you get that acquisition and you lose in the court of public opinion and you're done. That's been an argument he has made. He is sort of talking about Chicago specifically here, 60 percent surge in murder rate.

Is it fair to say police are pulling back? Murders are going up because they're afraid?

DARRIN PORCHER, FORMER NYPD LIEUTENANT: Well, it goes back to, when we look at the Michael Brown, shooting something that FBI Director Comey referred to as the Ferguson effect. You have many officers that have a sense of regression towards proactive policing. And this is something that also translated after the Michael McDonald shooting up in Chicago.

However, ultimately, police generally -- they want to do the right thing. They want to protect citizens within these communities. But they want to feel a sense of being back by not just citizens in the communities but the executives within these police departments. And they feel that the executives in these police departments, couple with the pubic, have not had their backs on the streets.

BURNETT: Have not had their backs?

PAUL MARTIN, CRIMINAL DEFENSE ATTORNEY: The reality is videos aren't going away. Cameras aren't going away. So, police officers are going to have to adjust and figure out a way to police where the environment of having videos. And they're going to have to be proactive.

And the fact that your employer may not view them as wearing the white hat should not affect whether how they police. They still have a job to do. That's what they signed up for and that's their obligation to do it.

BURNETT: So, you know, Trump made this point that they were pulling back because of profiling, the former Chicago police officer, Brian Warner, was on "60 Minutes" last night and he said that is, in fact, what is happening. We are seeing this debate between the mayor and President-elect Trump.

Here is Officer Warren.


BRIAN WARNER, FORMER CHICAGO POLICE OFFICER: You have a 911 call, you go to your 911 call. But if you are on aggressive patrol, when you're out looking for people breaking the law, that's not happening as much as it was.

INTERVIEWER: But you say they're not being as proactive.

WARNER: No, they're not. And how could you ask them to be and why would you expect them to be?


MARTIN: I expect them to be because that is what they signed up to do.


BURNETT: He is saying they're not. They're afraid. They don't want to be the officer in spaces emblazoned on TV every night.

PORCHER: I can speak from a personal experience. There should be two components. Both components need to work together. The community and police must work together for us to have an effective strategy.

Look at a place like Chicago, for example. The number of police pales in comparison to the citizens that live in that city. Therefore, the two entities need to work together and --

BURNETT: There is always someone with a cell phone on the street.


PORCHER: Police have to change and they have to -- they have to align themselves with modern technology. But at the same token, the two entities must come together and make that a better place.

BURNETT: So, Paul, let me ask you, "60 Minutes" talked about an October arrests, right? They gave an example. Female police officers arresting somebody. She was afraid of being the next viral video.

This is what she said. This is a video of what happened to her. She didn't pull her gun because she was afraid of being that next viral video. She suffered neurological damage. The suspect smashed her head into the concrete, into the ground.

MARTIN: How do we address it?

BURNETT: How do you address that?

MARTIN: I think you need better training. I think officers are going to have to be trained better. I agree with the community aspect but the problem is people in those communities are fearful of the police officers for whatever reason, for the stop and frisk. They are fearful from --

BURNETT: Their first instinct is to pull out the cell phone.


PORCHER: Stop and frisks have come down tremendously. They've come down tremendously. And we look at, there was no correlation between -- we look at Floyd versus city of New York. That was a lawsuit we had here in New York City with stop and frisk.

Although the number of stop and frisk had gone down, the gun arrests still maintained and it continued to go up. Therefore, there's no correlation between the number of stops and people arrested.

[19:35:00] BURNETT: So, will the feds being involved help? First of all, you have the Republican incoming president suggesting federal involvement, which in and of itself is an irony to many, Paul. But he is now saying to Rahm Emanuel, basically, you can't get it done. I'll come in and do it for you.

MARTIN: Well, the law enforcement obligation is up to the state and to the city officials. There is a place for the federal government. I'm not sure if I want federal troops in my neighborhoods defending or policing.

I don't think that's a job for the federal government. I think the federal government does have a role, education, better housing. I think there is a role for the federal government but not in policing.


PORCHER: Normally, what the federal government does is implement grants to these police departments. The president also holds the responsibility of federal law enforcement such as ATF and DEA.

BURNETT: Because they can. Basically, they can come in.

PORCHER: Right. What more than likely is going to happen is, the president is going to commission a panel of FBI agents and -- ATF agents and DEA agents, and they will prosecute a lot of gun cases on the federal level. In addition to that -- hear me out. (CROSSTALK)

PORCHER: Hear me out. In addition to that the federal government can employ a level of grants to these police departments to fortify their --

MARTIN: The assumption is they are not doing it now. Feds are there. There's undercover officers doing their jobs. There's other issues in the city of Chicago that has to be addressed in order to take down this gun violence.

BURNETT: Yes, issues that President Obama will be addressing next week and perhaps committing a lot of his next four years to addressing.

Thank you both.

Next, Donald Trump caught on tape at his New Year's party. We actually have the tape. You will hear him. There were no cameras in the room other than people who he didn't know were filming.

And North Korea announcing it will soon have a ballistic missile that could hit the mainland of the United States, a nuclear weapon. Trump tonight saying it will not happen. What exactly did he mean?


[19:40:37] BURNETT: Breaking news: new video emerging moments ago of the president-elect and his New Year's Eve Party at Mar-a-Lago in Florida. Trump appearing to lavish praise on his billionaire business partner from Dubai, a man named Hussain Sajwani.


DONALD TRUMP (R), PRESIDENT-ELECT: Hussain and the whole family from -- are the most beautiful people from Dubai are here tonight. And they're seeing it and they're loving it.


BURNETT: Sajwani's company building the Trump International Course in Dubai now working a second course designed by Tiger Woods.

Brian Stelter is OUTFRONT.

And, Brian, you know, here is the thing. He said there is going to be no more deals done and not interacting with business people. Here he is with one of his biggest partners.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: You can build the highest wall to restrict Donald Trump from business interests, and yet he'll still know what's on the other side of that wall because he has had relationships for years. And that's the thrust of this issue. He's still hanging out with his business partners, he's still showing up with them in social settings.


STELTER: Now, his spokesman tonight is saying this was simply a social setting. No business conducted. This was no big deal. But we see it on the video tape and by the way --

BURNETT: I mean, it's a big deal. You have the partner and his entire family come in from Dubai for your holiday party at Mar-a-Lago.

STELTER: It speaks volumes. And also, let's keep in mind how we are seeing this. This is a leaked video tape from one of the partygoers at Trump's New Year's Eve party.

The press was not allowed into the event. Trump said they were. They were not. They were not in the back of the room, because he was calling the media garbage this event.

This is a leaked videotape. The fact we are learning about what Trump is doing through photographs and videos that are leaked by partygoers, it says a lot about how unavailable he has been to the press.

BURNETT: So, what else did he say on the tape?

STELTER: One of the most interesting parts of the tape,, we're going to this tape and it's online now. People can check it out. Interesting conversations he has, on stage talking with all of his friends at this party was about his wife Melania and about how he says she was a big factor in his election. Here's what he said about Pennsylvania.


TRUMP: And Melania went to Pennsylvania and made a speech. After she made that speech, my poll numbers went through the roof. We won Pennsylvania, first time in 30 years --


STELTER: Remember, one of the most important states for Trump on election night, Pennsylvania, it was that key state 20, electoral votes. He is saying the late in the race speech by Melania was a difference maker for his campaign.

BURNETT: Now, other people in the room, you had Sylvester Stallone. You had Fabio. You had other billionaires.

STELTER: Yes, we know about Fabio because of a photo with Fabio and Joe Scarborough that leaked out. You know, there's these photos --

BURNETT: Joe Scarborough was there.

STELTER: We're sort of learning about events through the attendees, which isn't a terrible thing. It's not unheard of. But it is unusual and it's a reminder that we are not hearing from Trump directly on these matters. He was going to have the press conference in December about his businesses, and then delayed it to January. Now is second day of January and we are waiting to see when he will address this publicly with the press and with the public about his plans for his businesses.

BURNETT: But even in that room, he said he is building a wall and went through all of his promises. What was the reaction?

STELTER: It brings up the larger issue about how guests were allowed to come to this event. About 400 or 500 bucks plus


STELTER: He says he doesn't care about the guests who paid admission to the event. He cared about the members of the club, his friends who were there.

But I think this tape, this leaked videotape reiterates the concern about the fact that you can pay to come to one of the events. And once you are at this event, he is talking about his plans as president. This is a very clear demonstration of how policy and personal life is mixing for Donald Trump.

BURNETT: All right. Brian Stelter, thank you.

STELTER: Thanks.

BURNETT: And next, the breaking news, Trump tonight responding to North Korea's New Year threat. North Korea saying they are about to have a nuclear weapon that can hit the mainland United States. Trump's tweet, it won't happen.

And on a lighter note, Jeanne Moos on Mariah Carey's New Year that went viral for the wrong reason.


[19:47:32] BURNETT: Breaking news, Donald Trump with a major threat to North Korea. Trump responded to Kim Jong-un's threat. But he's on a verge of a missile that could hit the mainland United States with a nuclear weapon.

Trump tweeting just moments ago, North Korea just stated it is in the final stages of developing a nuclear weapon capable of reaching parts of the United States. It won't happen.

Barbara Starr is OUTFRONT live at the Pentagon tonight.

And, Barbara, Trump saying it won't happen. It's a powerful and frankly pretty stunning threat from the president-elect, isn't it?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Erin, nobody threatens North Korea lightly. If the threat of a nuclear North Korea were to become so imminent that President Donald Trump felt he had to order a military strike, the implications for South Korea, China, the United States and the world are almost staggering to contemplate.


STARR (voice-over): North Korea leader Kim Jong-un's New Year's Day message -- he is almost ready to launch an intercontinental ballistic missile, an ICBM, that someday could hit the U.S.

KIM JONG UN, NORTH KOREAN LEADER (through translator): Research and development of cutting edge arms equipment is actively progressing and intercontinental ballistic missile test launch preparation is in its last stage.

STARR: A security challenge Donald Trump could face very early on. Trump has made clear on the campaign trail he wants China to deal with Kim.

DONALD TRUMP (R), PRESIDENT-ELECT: We have to be very vigilant on North Korea. We cannot let this guy go much further. And China should handle that problem.

STARR: And offering his own blunt assessment of the North Korean leader.

TRUMP: You have the guy in North Korea and he's probably crazy.

STARR: Something Donald Trump and current director of CIA appear to agree on when it comes to Kim.

John Brennan telling Erin Burnett this about Kim Jong-un:

JOHN BRENNAN, CIA DIRECTOR: He is delusional because he believes that the world is going to accept a nuclear North Korea and allow it to maintain that arsenal.

STARR: U.S. war plans have long detailed a strike option, bombing the regime if it poses an immediate nuclear threat. But the intelligence community warns the U.S. may have few cards to play.

JAMES CLAPPER, DIRECTOR OF NATIONAL INTELLIGENCE: I think the notion of getting the North Koreans to denuclearize is probably a lost cause.

STARR: There is intelligence showing how far Kim has moved ahead.

GORDON CHANG, AUTHOR, "NUCLEAR SHOWDOWN": The North Koreans are very close to being able to make a nuclear weapon to their longest range missiles and hit the United States.

[19:50:08] STARR: The North Koreans have already tested an intercontinental long range missile, but it had a satellite on the front end, not a warhead. And North Korea claims it's already tested a miniaturized warhead for an ICBM. U.S. officials say they can't verify that, but they have to work under the assumption it's true.

North Korea has conducted five underground nuclear tests. Another could happen at any time with little or no warning, U.S. intelligence officials say.

But North Korea still has to master the technology to assure its ICBM can hit a specific target.

(END VIDEOTAPE) STARR: A traditional strategy offering Kim sanctions relief in exchange for concessions of his nuclear program essentially putting more money in his pocket may not work this time. A recent defector said that Kim is not interested in money. He wants the world to recognize him as a nuclear superpower -- Erin.

BURNETT: Thank you, Barbara.

And OUTFRONT now, Gordon Chang. You just saw him there, author of "Nuclear Showdown: North Korea Takes on the World."

You were talking about, you know, look, the goal here and indeed the assessment. They are going to get a nuclear missile that can hit the mainland of the United States. Trump's tweet tonight, "North Korea just stated it is in the final stage of creating a nuclear weapon capable of reaching parts of the U.S. It won't happen."

Those are crucial words. It could mean a preemptive strike, as you heard Barbara say. The repercussions of that are staggering contemplate. How will Kim Jong-un respond to this threat?

CHANG: Well, Kim Jong-un and North Koreans are going to view that as an imminent threat to use force. I don't know how the Chinese will look at it. They might just roll their eyes. But nonetheless, there is a dynamic here, because once Kim starts to do things, China may feel it has to support it because the Chinese military is very, very strongly in favor of helping the North Koreans. And so, we know what happened in 1950.

BURNETT: I want to talk about China in a moment. But the fact that they can see this as an escalation or a threat obviously is crucial. If North Korea perfects a missile, experts say it could hit the mainland of the United States you are talking about the west coast, California, Oregon, Washington.

The website Nuclear Secrecy came out with assessment, you could look at the city. So, people understand what we're talking about here because in this era, people may forget. If a nuclear missile hit Seattle, 68,000 people would die in one second, 68,000 people would die. Almost 90,000 more people would be severely injured.

What is North Korea really capable of? Is this what they are capable of a nuclear strike on a city like Seattle?

CHANG: Well, right now, they've got three launches that can hit lower 48 states. The one thing they can't do is they are not reliable and they're not accurate and they don't have heat shielding so they can deliver a weapons. But let's say within three years, I think maybe four, they'll be able to do that. And so, you know, then, the only question is whether we can stop it with our interceptors which are pretty elementary right now.

BURNETT: They have not been tested.

CHANG: They haven't been tested in a real life situation. I mean, we had test, but once that had been sort of, you know, not real ones. BURNETT: So, Trump came out when you mentioned China tonight. Follow

up tweet, China has been taking out massive amounts of money and wealth from the U.S. in totally one-sided trade, but won't help with North Korea. Nice."

Obviously, trying to pressure China. Does this work? Do they roll their eyes as you said?

CHANG: Well, it only works if they think Trump is serious. The only way Trump can stop that test of intercontinental ballistic missile is, which is what he just said in his tweet, is if he imposes crippling sanctions on North Korea, but more important on China, and especially on Chinese financial institutions that have been handling the cash for North Korea's weapons programs.

BURNETT: All right. Gordon Chang, thank you very much. Very sobering.

And next, Jeanne Moos on Mariah Carey's rocky New Year's Eve. The finger pointing is in full swing.


[19:57:36] BURNETT: Mariah Carey's rocking New Year's Eve in Times Square turned out to be a big dud.

Here's Jeanne Moos.



It won't be forgetting this New Year's Eve performance anytime soon.

Instead of singing to her 1991 hit "Emotions", Mariah Carey's vocals went missing.

MARIAH CAREY, SINGER: We're missing some of these vocals, but it is what it is.

UNIDENTIFIED MALE: We're missing your vocal.

MOOS: Viewers got very vocal.

UNIDENTIFIED MALE: What is going on? Is this how 2017 is going to treat us?

MOOS: Mariah vamped around the stage.

CAREY: We didn't have a sound check, but it's New Year's, baby.

MOOS: Awkwardly killing air time.

As she called for technical assistance.

CAREY: Get these monitors on, please. UNIDENTIFIED MALE: A train wreck happened. But as the train wreck

was happening, a plane crashed into it.

MOOS: And tweets flew. Breaking: Mariah Carey has blamed Russian hacking for her performance.

The last thing 2016 killed was what is left of Mariah Carey's career?

UNIDENTIFIED MALE: Who did she kiss at midnight? Her career goodbye.

MOOS: And how did Mariah describe it?

CAREY: That was amazing.

MOOS: So amazing she later tweeted (EXPLETIVE DELETED) happens. At least LaTonka the puppet was sympathetic.

LATONKA: Oh, Mariah, I feel bad.

MOOS: Mariah's people say the singer was given a malfunctioning earpiece, that they complain about it before the performance.

The producers of New Year's Rocking Eve, Dick Clark Productions, said they had no involvement in the challenges associated with Mariah's performance. At one point, you can see a dancer struggling with an audio pack, and Mariah repeatedly feeling around for her earpiece, an earpiece that had some piecing together evidence frame by frame.

Your face when you realize you are the first meme of 2017.

One point, Mariah just let the mic drop -- as her prerecorded voice continued on. No wonder this guy thinks he lip syncs to Mariah better than Mariah herself.

Jeanne Moos, CNN, New York.


BURNETT: Let me say, that guy was pretty good.

Thanks for joining us. Don't forget, you can watch OUTFRONT anytime anywhere on CNN Go. See you back here tomorrow night.

"AC360" with Anderson starts now.