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Manhunt Underway for Gunman in Istanbul Nightclub Attack; Trump Touts Insider Knowledge on Hacking; Malware Found on Burlington Electric Laptop; Queen Misses New Year's Service; President Tweets Praise for Job Growth Record; The History of the Band Chicago. Aired 5-6p ET

Aired January 1, 2017 - 17:00   ET


[17:00:08] POPPY HARLOW, CNN ANCHOR: Top of the hour. Happy New Year, everyone. I'm Poppy Harlow, live in New York. You are live in the CNN NEWSROOM.

And we begin with the first terror attack of 2017. And brand-new video of what authorities believe is a lone gunman opening fire in a very crowded, jubilant Istanbul nightclub. 39 people murdered there last night. Right now a manhunt is underway for this man seen in the video. First, he shot a police officer, killing him. This officer who was guarding the club. Then he walked inside, unleashing bullets, quickly turning a lavish New Year's celebration into a blood bath. Club goers panicked. Some raced outside and jumped into the frigid waters in the Bosphorus Strait trying somehow to escape. Now 70 people are hospitalized. A U.S. citizen is among the wounded.


UNIDENTIFIED MALE: I got shot in the (EXPLETIVE DELETED) leg, man. This crazy people came in, shooting everything. I don't know. I saw one person there shooting. I'm hiding.


HARLOW: No group has claimed responsibility yet for the attack. Our Sara Sidner is live for us tonight in Istanbul.

And Sara, obviously before we get into the details of the ongoing investigation, et cetera, I do want the latest on the victims. What are we hearing at this time? Because I know dozens and dozens of people were hospitalized.

SARA SIDNER, CNN CORRESPONDENT: Right. And at this point, 69 people were injured in this incident. And now we know some of the makeup of those who were -- who were killed. 24 of the 39 people were foreign nationals who died in this massacre. It gives you some idea of what this club was like. It really did bring east and west together, just like Istanbul, with one side belonging to Asia, the other side belonging to Europe.

And this club was filled with people from all over the world, including from America so Tunisia to Saudi Arabia. And those were also some of the victims here -- Poppy. HARLOW: So, I mean, I know Turkey well. It is -- it is stunning to

me to see what has transpired. I mean, the fact that this is the fourth terror attack in Turkey in a month's time. This after the failed coup attempt. I mean, there has been so much instability in Turkey. But specifically this area where the attack was carried out, what can you tell us about it?

SIDNER: This is a very hip, if you will, area, if that word is still hip in 2017. This is an area where people of all different socio- economic backgrounds could also come because there are nice little places to eat, little cafes that are inexpensive. But then there's also these nightclubs that are here. So in the evening time, young people and the jetsetters like to come out to places like Reina. And it is right on the Bosphorus. And you know what that looks like, Poppy.

It's a beautiful, glowing place that you can see if you're on the other side of Istanbul. You can see, look back and see a lot of people just enjoying themselves, having drinks, having a party. And of course, it was New Year's Eve. People were here hoping for a better tomorrow. Hoping for less violence in 2017.

Istanbul has experienced five other attacks in 2016. Those attacks rising in number here. And then 2017, just about 75 minutes into 2017, and you have this happen. It really disheartened so many. And there are still so many families worried about their loved ones in the hospitals. Others tomorrow will bury their dead -- Poppy.

HARLOW: And Sara, from the surveillance video, we can play a little bit more of it for our viewers. What are the authorities trying to glean from it? What do they believe they can learn from it?

SIDNER: If we look at the video, and I know you've seen it yourself as well, when you look at it, you can see a lot of details about what he looks like, but also the kind of weapon that he's using. And I'm sure they are looking into that, as well. Where did the weapon come from? What kind of weapon is it? They are going to be asking everybody and anybody who was around and in this club if they knew this person, if they recognized this person.

And the closer they can get to figuring out who he is, of course, the closer they can get to trying to find him. They are in a major manhunt. And the deputy prime minister said this. He said, we are not going to let this person breathe in the new year. In other words, we're going to be hot on his trail.

There was a lot of confusion at the beginning as what happens a lot with these terror attacks. But when you see the video and these gunshots going off in the dark, and you see the flash and the fire coming off the gun, and then you see him directly pointing that gun at people that he is just a couple of feet away from, it tells you something about how intent he was going into this club and just creating absolute havoc and a massacre -- Poppy.

[17:05:09] HARLOW: Sara Sidner live for us in Istanbul, thank you for all of the reporting. I know you and your team have been working around the clock since this happened. Thank you, Sara.

This nightclub mass shooting is just the latest, as I was saying, in a wave of violence across Turkey. Less than two weeks ago, a gunman assassinated Russia's ambassador to Turkey in broad daylight, in the middle of this art gallery. Back on December 10th, two bombings after a soccer game killed 40 plus people in Istanbul. ISIS is suspected in a June terror attack, as you well know, in Turkey's largest airport, where 44 people were killed. Also that failed military coup in July was violent. Nearly 300 people were killed during that.

Let's talk about all of this and where this country goes from here with Ambassador James Jeffrey. He served as U.S. ambassador to Turkey from 2008 to 2010. Thank you for being with me.


HARLOW: As I said, the fourth terror attack in Turkey in less than a month. Since 2015, more than 400 people have been killed in major attacks across the country. What is your reaction to this latest attack?

JEFFREY: Poppy, first of all, we have to focus on who did this. I'm 99 percent sure, and I think the Turks are, too, this was Daesh or the Islamic State. This would have been the sixth attack, three of them in Istanbul, that they've carried out in Turkey in the last two years. So that's problem number one. Plus, as you noted, you've had the attacks by the Kurdish rebel group PKK directed at Turkish police security.

HARLOW: Right.

JEFFREY: And all in all, this is creating chaos in Turkey. It is having an impact on the structured fiber of society and on the economy, as well.

HARLOW: Barely two months ago, the U.S. State Department issued a warning. Let me read part of it. It reads, "Extremist groups are continuing aggressive efforts to attack U.S. citizens in areas of Istanbul where they reside or frequent."

I mean, this is -- Istanbul, I didn't think twice when I traveled to Istanbul a few years ago for pleasure. I got engaged on Bosphorus in Istanbul and didn't think twice about my safety. What is it that has changed so much there to make it so risky in all of these different venues? At the airport, at a soccer match, at a nightclub on New Year's Eve.

JEFFREY: Specifically, in Istanbul, it is Daesh, it's ISIS. The PKK, the Kurdish insurgency strictly limits their attacks to Turkish security forces. And, of course, the Gulenist movement was a one-off on July 15th, as you pointed out. But the series of attacks we're seeing that's traumatizing the country and focusing particularly on international venues like this nightclub, like the airport, and particularly tourists, as we saw last night, that's ISIS. That's Daesh. They're trying to bring this country to its knees. HARLOW: But why Turkey?

JEFFREY: Several reasons. First of all, it's right next door to ISIS' headquarters in Raqqa and Mosul. Secondly ISIS developed some pretty burrowed in cells in Turkey to move people and weapons in and out of the country. But most importantly, President Erdogan of Turkey has launched a major military campaign in northern Syria against ISIS moving towards Raqqa from the northeast. They're fighting in Al-Baab right now, it's a vicious fight. And so because he is taking action on the ground against ISIS, ISIS is striking back.

HARLOW: Let me read you part of what President Erdogan of Turkey said in the wake of this attack. "As a nation, we will fight until the end against not just the armed attacks of terror groups but also against their economic, political and social attacks." What do you see as Erdogan's move next? I mean, this is someone who is obviously dealing with the aftermath of what was indeed a failed coup, but a coup no less. This is someone who has clamped down incredibly on those who oppose his government and his rule, including journalists. What do you expect he will do next?

JEFFREY: Well, first of all, he's got a constitutional referendum coming up. That's his most important priority, to change the constitution, give himself more presidential power. Some of what's going on, particularly the fighting against the Kurds, is based upon that. But the underlying problem is until Daesh, ISIS, is taken care of, he is going to face these kind of attacks all of the time in Turkey. Not only Turkey, but all of us are going to have to try harder to take down ISIS in its headquarters, as I said, in Raqqa in Syria and Mosul in Iraq.

HARLOW: Turkey is, no question, the United States' biggest and most critical ally when it comes to those countries in the Middle East in the fight against ISIS. Obviously, you've got a major air base that is used for the fight against ISIS there. Do you expect at all that Turkey will pull back from its efforts in Syria to fight ISIS, to deal with this terrorism that is wreaking havoc across their own country?

[17:10:09] JEFFREY: Poppy, I know President Erdogan really well. He will not pull back. The problem is, there's only so much he can do himself. The bottom line here is while he used ground forces, President Obama has declared that the fight against ISIS will not involve Western elite combat troops fighting on the ground. Once he did that, the French who did it in Mali against al Qaeda, the Americans who've done it in Afghanistan haven't been able to deploy forces so we haven't been able to generate up to two and a half years momentum against ISIS.

If that doesn't change -- Trump says he'll change it, we'll see -- ISIS is going to be around doing attacks like this, sponsoring attacks like in Berlin last week. It's going to go on and on. These guys have to be taken down. We have to take it more seriously.

HARLOW: Ambassador James Jeffrey, I appreciate you joining me tonight. I wish it was on better news.

JEFFREY: I do too, Poppy.

HARLOW: Again a huge, huge terror attack just an hour into the new year. Thank you very much, Ambassador.

JEFFREY: Thank you.

HARLOW: Back here in the United States, President-elect Donald Trump is promising to reveal new information on Russian hacking. Information he claims no one else has other than him. Listen.


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.

UNIDENTIFIED REPORTER: What do you know that other people don't know?

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


HARLOW: He said we'll find out more on Tuesday or Wednesday. Until then, let's get the latest from our Ryan Nobles. He joins us now.

And Ryan, that sound was from some journalists speaking with him at his New Year's Eve party in Mar-a-Lago. Do we know anything -- I mean, any more details about the information he says he has on the alleged Russian hacking of the election?

RYAN NOBLES, CNN CORRESPONDENT: No, Poppy, that's about it. In fact, we don't even know who he is talking about when he claims that he knows more than a group of people when it comes to this intelligence assessment. And what this does tell us, though, it's clear that the president-elect remains pretty skeptical about what the intelligence community has to say about Russia's involvement in this alleged hacking.

It appears that he is still currently has somewhat of a lack of trust when it comes to the intelligence community in general. And during that same very brief press gaggle last night during his New Year's Eve party at Mar-a-Lago, Trump talked about past U.S. intelligence failures as a way to explain that lack of trust. Take a listen.


TRUMP: Well, I just want them to be sure because it's 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. And so I want them to be sure. I think it's unfair if they don't know.


NOBLES: And now one of the things that Trump's aides have said in the past is that if there is concrete evidence that the intelligence community has about this Russian hack, that they should put it out into the public so everyone can see it. And perhaps we'll learn more about that this week, Poppy, when Senator John McCain calls some of the leading intelligence officials to Capitol Hill for a hearing of the Senate Armed Services Committee. You can expect members of Congress asking some very pointed questions about this alleged Russian hack.

HARLOW: Absolutely. And as we know, perhaps that's what he was eluding to when he said Tuesday or Wednesday, you'll find out more about what I know about the hacking. He is set to meet with these intel officials. It's a meeting that, I should note, is pretty late. I mean, President Obama met with those heads of the intel agencies just a few weeks after getting elected. This is now seven plus weeks after the election.

Do we know what to expect from that meeting, though?

NOBLES: We don't. And I think the big question that many have is, will the president-elect go into this meeting with an open mind? As we said before, he seems very skeptical of their assessment up until this point. So even if these intelligence officials come to him and lay out the evidence that they've gathered over the past couple of months, will he even believe them? Will he then share this information that he claims to have with them, as well?

There's certainly someone or a group of people that he appears to trust when it comes to this particular issue, Poppy. But at this point, we don't know who that is.

HARLOW: Ryan Nobles reporting for us live in Washington. Ryan, thank you. Happy New Year to you. We appreciate it.

NOBLES: Happy New Year to you, Poppy.

HARLOW: A lot ahead this hour. Live in the CNN NEWSROOM.

Insider intel. Less than a month after slamming the intelligence community about their information on Russian hacking, President-elect Donald Trump says he has new information that only he has. Will that -- will that indicate that his relationship with the intel community has changed? We're going to talk more about that ahead.

Also royal concerns. Queen Elizabeth skipping New Year's Day church service after being under the weather for quite some time. New details on the health of the 90-year-old royal.

And later, from their Windy City roots through their rise to the top of the charts, Chicago's success is legendary.

[17:15:02] Don't miss my interview with the band.


HARLOW: A Vermont utility company says there is, at this point, no indication that any of its information or its systems were compromised by malware linked to Russian hackers. Burlington Electric now saying the malware found on a company laptop was not unique and there is no evidence of an attempt to tamper with the electric grid.

Let's get the latest from our Jessica Schneider who's here with me. Obviously this is a developing story. We first learned about it over the weekend. And the big concerns are with the Russian alleged hacking of the election. Is this more? How big could it get? You're talking about our electric systems, et cetera. How did Burlington Electric even discovered the malware on that laptop anyways?

JESSICA SCHNEIDER, CNN CORRESPONDENT: Well, you know, this all started unfolding on Thursday when the Department of Homeland Security and the FBI, they released a 13-page report. And in that report it included information about a malware code that was found on the Democratic National Committee computers as part of the hacks over the election season, that the U.S. has been pinned on Russian hackers.

Well, that's when Burlington Electric then went into its computers and it actually found an Internet address using that same malware code, it was communicating with one of its laptops. So Burlington Electric, it acted fast. It then took the computer offline, it isolated the computer and then it contacted the federal authorities. They're now working with the federal authorities.

The Department of Homeland Security has acknowledged that this is the same malware code that was, in fact, used with the DNC hacks and that was tied to the Russian hackers as alleged by the U.S. government.

And Vermont's governor is also speaking out about this, as well, putting it very tersely and pointedly in a statement. Take a listen to this. Governor Shumlin said, "Vermonters and all Americans should both be alarmed and outraged that one of the world's leading thugs, Vladimir Putin, has been attempting to hack our electric grid which we rely on to support our quality of life, economy, health and safety." And then he continued there. So not mincing words there from the governor.

And the feds, of course, investigating this. Looking into this. And wondering, could this, in fact, be all tied to what they say was Russian hacking during the election season.

HARLOW: And even though this, if it was an attempt -- I mean, there's a lot more they have to find out, but even if it was not successful, the real question is the impact that it could have, right?


HARLOW: And the utility company is talking about this. What are they saying?

[17:20:02] SCHNEIDER: Yes. The general manager of the utility company coming out strongly and assuring customers that everything is OK. This was not, in fact, a hack, and nothing was compromised. Here's what we said.

(BEGIN VIDEO CLIP) NEALE LUNDERVILLE, GENERAL MANAGER, BURLINGTON ELECTRIC DEPARTMENT: Let me be very clear. That computer was not connected to our grid control systems. Our grid was not penetrated, was not breached. And we have no indication of compromise with any of our systems or any of our customer data.


HARLOW: So then where do they go from here? I mean, what's next?

SCHNEIDER: Well, this is all part of this active investigation. So the homeland -- the Department of Homeland Security not saying a lot about this, except to confirm that yes, this was in fact the same malware that was found on the DNC computers. But they're not going much farther than that. So this all will be unfolding. But of course, this does cast some question as to what happens from here. Could other municipalities, other states, other utilities be compromised?

You know, this computer was not tied to the electric grid but could there be danger in the future for others?

HARLOW: And so many of our homes these days are the smart homes, smartly connected homes where --

SCHNEIDER: Everyone got one for Christmas probably.


HARLOW: Yes. You know, it just opens up a lot more risk, as well, as convenience.

SCHNEIDER: It does. It's a concern.

HARLOW: Jessica, thank you. We appreciate it.

Straight ahead, Queen Elizabeth skipping a holiday tradition because of a very bad cold. We'll have an update on the royal's health next live from London.

You're live in the CNN NEWSROOM.


HARLOW: First, she had to miss a Christmas church service and now a New Year's service. Queen Elizabeth has been noticeably absent at both. The 90-year-old monarch staying at home because of a very bad cold. But a source close to the Queen says she is up and working.

Our Phil Black has more.


PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: A nasty, persistent cold, but nothing to worry about that. That's what we've been told about the Queen's health after she missed the traditional New Year's Day church service.

Other royals did attend including Prince Philip, her husband, he was also struck down by a cold around the same time, but he appears to have bounced back. While the Queen is still recovering after almost two weeks indoors, out of sight, the same cold, of course, forced her to miss the Christmas Day church service.

These absences are not insignificant. She is the head, the titular head at least, of the Church of the England, something she takes very seriously. So we can only assume she has been feeling terrible. But her advisers at Buckingham Palace are going out of their way to tell journalists that the 90-year-old monarch is doing OK.

[17:25:04] They're stressing that she is still in residence at the Sandringham Estate. She hasn't been moved medical or any other reasons. And they say she is up and about, and they stressed she's working and still receiving the documents, the briefing papers that she has to stay on top of, as part of her official role as Britain's head of state.

Now they're doing this to ensure there isn't any unnecessary speculations or perhaps exaggerated concern about the Queen's health. They want everyone to know that it's just an awful cold, but she is battling through it.

Phil Black, CNN, London.


HARLOW: Phil, thank you so much for that update.

Coming up next, the president-elect set to meet with the heads of the major U.S. intel agencies this week. This as the Senate Armed Services Committee holds a hearing on those cyber attacks. Much more on what we can expect this week as Washington gets back to work.

You're live in the CNN NEWSROOM.


HARLOW: It has been three months since U.S. intelligence agencies concluded that Russia was behind the election hacking, but this weekend, President-elect Donald Trump said that he has new information of his own about it. Listen.


TRUMP: I want them to be sure. I think it's unfair if they don't know. And 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.

UNIDENTIFIED REPORTER: What do you know that other people don't know?

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


HARLOW: Let's talk about all of it with Ben Ferguson, CNN political commentator and host of the "Ben Ferguson Show," Ryan Lizza, CNN political commentator, and Washington correspondent for the "New Yorker," and Ari Schwartz, former special assistant to the president on cyber security.

Thank you all for being here. Ari, welcome to the program. Our first time having you on so let me begin with you.

[17:30:01] You worked, obviously, in the White House with President Obama on the cyber security issues. He is awaiting that final report from the intelligence community that he is expected to get next week on Russia's alleged hacking into the election. But I'd like your take on the comments from the president-elect last night. We know he is getting more of these intelligence briefings.

Is it plausible that he does have information on this that the public has not been made aware of yet?

ARI SCHWARTZ, MANAGING DIRECTOR OF CYBERSECURITY, VENABLE: Well, I would say attribution is difficult in these kinds of incidents. So that part is true. But I will also say the intelligence community is very conservative. Very, very conservative about these kind of situations. And the fact that they came back with a high assessment and to do it so publicly and then to tie it to sanctions last week really shows that there is real consensus out there that it is Russia. So I think that if you look at what the private sector has shown, what is coming out of the intelligence community at this point, we have a pretty clear grasp that it is Russia.

HARLOW: He said in those remarks last night at his New Year's party that hacking is hard to prove. You're an expert on this who works in the White House on it. Is he right?

SCHWARTZ: As I said, I mean, doing the attribution piece of it.

HARLOW: Right.

SCHWARTZ: In other words, who actually is to blame and where they're coming from can be difficult. We've gotten a lot better at it. But here you have two different private sector groups and you have the intelligence community separately all pointing to the exactly same place.

HARLOW: Right.

SCHWARTZ: And doing it with enough specificity to give confidence to anyone that really works on these issues. I think there is a pretty clear consensus among those that work on these issues regularly that it is Russia.

HARLOW: And look, Ryan, he did say that we, the public, will be made aware of what he knows about it and what we don't know Tuesday or Wednesday. But that just struck me, that he sort of teased, coming up, like a tease we might do on this show. Coming up next, you know, I'll tell you on Tuesday or Wednesday. What did you make of that? Because this is -- I mean, might laugh a little but this is a serious foreign -- serious foreign policy issue.

RYAN LIZZA, CNN POLITICAL COMMENTATOR: It's very serious. And look, let's be honest, if the Obama administration is wrong about this, if they have blamed Russia for a hack of our campaign and this propaganda campaign that happened in 2016 and issued sanctions and kicked out 35 diplomats and closed two diplomatic, you know, compounds, then that is an enormous scandal if they got this wrong.

So for Donald Trump so suddenly have information about this that in any way contradicts the consensus of 16 intelligence agencies in the United States, and contradicts probably one of the most aggressive responses to cyber warfare that the United States has pushed forward with, that's a pretty big deal. So I -- you know, like everyone else, I'll be waiting with bated breath to hear this alleged new information.

I would also point out that Trump has a habit of hyping things, saying he is going to do press conferences, statements, and sometimes they don't happen. He said he was going to do a press conference on his conflicts of interest. He didn't do it. He said Melania was going to do a press conference on some immigration issue that came up last year. It didn't happen. So let's trust but verify.

HARLOW: Just for point of fact, he did not say that the information he has, Ryan, you know --

LIZZA: Right. Is contradicting. Right.

HARLOW: Contradicts --

LIZZA: Right. Right.

HARLOW: Contradicts what the intel community has said. I want --

LIZZA: But he has been skeptical. He has been highly skeptical obviously.

HARLOW: Oh, absolutely.


HARLOW: Absolutely. But he didn't know what he knows runs counter to what they've said.


HARLOW: Let's listen, guys, to what Republican Senator John McCain said about all of it this weekend.


SEN. JOHN MCCAIN (R), ARIZONA: When you attack a country, it is an act of war. And so we have to make sure that there is a price to pay so that we can perhaps persuade the Russians to stop this kind of attacks on our very fundamentals of democracy.


HARLOW: Ben, I mean, his words, an act of war, this also comes from one of the highest ranking Republicans who, as you know, is very skeptical of the Rex Tillerson pick for secretary of State, who will be a big part of that confirmation process because of his ties to Russia. What do you want to hear from the president-elect on Tuesday or Wednesday when he does tell us what he is talking about?

BEN FERGUSON, CNN POLITICAL COMMENTATOR: Well, I want him to paint a much broader picture and let us know exactly, fill in some of these question marks. I think most people can agree that this hack probably originated somewhere in Russia. Did it actually come from Vladimir Putin? Also what was the intent of the hack? Was this just a hack to gain information about the leading candidate at the time in Hillary Clinton?

The third thing is this, we also know that Russia has hacked in the past and other elections and we did not see retaliation in the way that we just saw it from this president, who also did not retaliate against Russia when they invaded one of our allies, took over Crimea and also started helping with genocide that was happening in Syria so -- in Aleppo.

So for this reaction that we just saw from Barack Obama, there are some questions here of how you can have this heavy hand throw out these diplomats, is this being done more so to corner Donald Trump when he walks into office and give him less options to deal with Russia?

[17:35:06] HARLOW: But, Ben --

FERGUSON: I think that's a question that has to be asked.

HARLOW: But, Ben, to be fair -- to be fair, you and fellow conservatives have been incredibly critical of the Obama administration, labeling the administration as weak on Russia.

FERGUSON: Right --

HARLOW: And now it sounds like you're saying, just like what Sean Spicer basically said this morning on ABC, you know, perhaps this wasn't a proportional response. Explain.

FERGUSON: No, we had -- there's a couple of things. You look at this administration. They have been weak on Russia. They've allowed Russia to not only go after and help kill innocent people in Syria and do nothing. We didn't throw out a single diplomat when there are thousands upon thousands of children that have died in the war. Not one diplomat was thrown out. We also had them when they invaded Crimea. We didn't throw out one single diplomat.

And Russia has hacked over the last eight years multiple times into the United States, and we never threw anybody out. So is this more about having an issue with Donald Trump coming in as president, or is it really about holding accountable Russia? And it does put the incoming president in an awkward situation. It ties his hands in a way. And I think that also is something that I want to hear Donald Trump talk about.

HARLOW: So then is John McCain wrong to call it an act of war, Ben?

FERGUSON: I think any time you have a country like Russia who is trying to influence this country, no matter what they're trying to do, it is a problem. Is it an act of war for hacking? I have a -- I have to have a question mark there because they've been doing it for the last eight years. And John McCain did not say over the last eight years when they were hacking that this was, quote, "an act of war."


HARLOW: I got 30 seconds. I have to give each of these gentlemen 30 seconds. Ryan, to you and then final thoughts.

LIZZA: Very quick. Look, I think Ben makes a good point about the proportionate response. That's very important. The difference is we know that Russia has been hacking frequently. We obviously hack Russia, as well. The difference here was exfiltrating information and then running a counter intelligence propaganda campaign with the information via WikiLeaks and these other places. That was the crucial difference here.

HARLOW: Ari, final thought.

SCHWARTZ: I completely agree with what Ryan just said. It is the taking the information and then using it publicly and selectively deciding what they're going to release. And not -- and doing it in a way that was trying to cover their tracks.

HARLOW: All right, guys, thank you very much. We'll wait.

LIZZA: Thanks, Poppy. HARLOW: We'll see what the president-elect has to say come Tuesday or

Wednesday. Appreciate it. Happy new year to you all.

LIZZA: Happy new year.

HARLOW: Still to come, President Clinton's team used to say it's the economy, stupid. That was true then. That is true now. Two administrations later, with a new president preparing to take office, we will take a look at what could be in store for the economy, for your wages, for the American worker.

You're live in the CNN NEWSROOM.


[17:40:54] HARLOW: President Obama taking to his successor's favorite medium and defending his legacy on Twitter. He touched on a lot from health care to clean energy to marriage equality and of course jobs. The president today tweeting, "Facing the worst financial crisis in 80 years, you deliver the longest streak of job growth in our country."

Let's bring in CNN Money senior writer, Heather Long. She joins me from the Windy City. Good to have you on, Heather. And let's begin with just fact-checking what the president said. Job creation, his words, the longest streak in history. 11 million jobs overall created. Some critics, though, point to what they call relatively anemic year-over-year economic growth. Lay out the facts for us.

HEATHER LONG, CNN MONEY SENIOR WRITER: That's right. Well, the president is correct that he has presided over the longest job -- months of job creation in history. However, his critics like to point out, wait a minute, how many jobs overall did he create? 11 million. Actually, President Clinton created more. So did President Reagan. So he doesn't win that comparison there.

Also, Donald Trump's really hit him hard on the fact that the economy could be much, much stronger. So, yes, we had this really severe downturn during the great recession, but since then, the economy has only grown about 2 percent on average per year. That's a lot lower than our historical average of 3.5 percent or even 4 percent per year growth.

HARLOW: One of the ways that, as you well know, the president-elect believes he can really boost employment in this country is through making it a lot more expensive to buy things made in other countries. He's floated this idea of possibly imposing a 35 percent tax or tariff on goods importing to the U.S. from all over the world.

I mean, almost all economists you ask, Heather, say that's a really bad idea because, A, you could start a trade war and, B, the last time we did that, you know, in the 1930s, it made the depression even worse. When you listen, though, to even some Democrats now, like Congressman-elect Charlie Crist, the former governor of Florida, they seem to be in support of this. Let's play it.


CHARLIE CRIST, FORMER FLORIDA GOVERNOR: Whatever it is that we come to to help American workers get back to work and help the middle class in our country, we need to do it and do it together. And do it in a spirit of cooperation. It's all about jobs and making sure that we have American jobs protected. We protect the American worker, give them the opportunity to be able to provide for their families, get a college education.


HARLOW: That's someone who supported Hillary Clinton in the election. How likely do you think this tariff is?

LONG: I think doing it across the board tariff, something along the lines of a 35 percent, a tariff is another word for a tax. So if we do a big across the broad 35 percent tariff, that means everything we buy, just about everything, is going to go up in price. And that is not going to make President Trump popular. And it's -- will more than likely start a trade war. So it's unclear if the jobs would even increase if he did that.

What a lot more likely is that everyone, as you noted, even Democrats like Charlie Crist, really want to be seen as helping on the job front.


LONG: And that's why we'll probably going to see something more like cutting taxes, cutting regulations, trying to encourage businesses to stay in the United States and create more jobs here.

HARLOW: Before I let you go, let's talk about minimum wage, something you and I talk a lot about and cover very much. The minimum wage has increased now in 19 states. We've got about 4.5 million workers affected starting today. What is the reality of it? What is it going to mean for people?

LONG: So there's 19 states that are doing it. There's a huge range in what people are doing here on January 1st. So we have some states like Ohio that are just going up about five cents. So that's -- it helps but it's not a huge increase. However, there's other states that are really doing big jumps. A lot of the focus right now on Arizona. That's usually a red state. Voters there went to the polls and approved a almost $2 increase in the minimum wage. So that's going to shoot Arizona up to one of the higher minimum wages in the country.

[17:45:05] So it's really fascinating to see that of those 19 states raising the minimum wage today, 13 of them are happening because voters went to the polls and checked yes, we want a bigger minimum wage in our state.

HARLOW: Yes. Fascinating to see. Heather Long, thank you so much. Nice to have you on the program as always. Happy new year.

LONG: Same to you.

HARLOW: All right. They said rock and roll was just a passing fad back in the '50s, but tell that to legendary rock group Chicago. I met up with them in Omaha, Nebraska, on the last leg of their 49th tour.

Tonight, CNN traces the band's Windy City roots all the way to the top of the charts. A preview just ahead.


HARLOW: Tonight, a new CNN film explores more than 50 years of history of the band Chicago. What started as a six-person rock band with horns in 1967 has transformed through the years and grown into a nine-member group that still tours the country and the globe today.

I met up with them, including some of the original members of Chicago in Omaha, Nebraska, on the last leg of their tour.

(BEGIN VIDEOTAPE) HARLOW (voice-over): After 47 gold and platinum records, dozens of charting songs and more than 100 million albums sold Chicago, the legendary band, is still rocking today. A brotherhood started with a handshake nearly 50 years ago.

UNIDENTIFIED MALE: It was a handshake and a jam session.

HARLOW (on camera): Did you ever imagine the success?

UNIDENTIFIED MALE: No. None of us did.

LEE LOUGHNANE, FOUNDING MEMBER/TRUMPET/VOCALS: To have this kind of success for this long is unprecedented.

HARLOW: So, guys, when was the -- when was the pinch me moment?

LOUGHNANE: We're still having it.

UNIDENTIFIED MALE: So, Poppy, do you want to walk up on stage?

HARLOW: Yes. Yes.

(Voice-over): We caught up with Chicago on the final leg of their tour in Omaha, Nebraska.

UNIDENTIFIED MALE: Omaha, how the hell are you?

UNIDENTIFIED MALE: It's a true band. A band of brothers, yes.

HARLOW (on camera): A band of brothers.


[17:50:03] ROBERT LAMM, FOUNDING MEMBER/KEYBOARD/VOCALS: And we would build these songs and build these albums together. And at some point I realized and I think we all realized that music is indeed what we're going to be doing pretty much for the rest of our lives.

I distinctively remember getting the first album in my hands and I was thinking that this is a lifetime achievement. You know. Chicago Transit Authority, vinyl. Double album. What could be better than this.

JAMES PANKOW, FOUNDING MEMBER: This music has transcended time. It has no demographic. People are still coming in. The audience, young people that discovered the music through their siblings or their parents. It strikes a chord in them. And people in the audience are 15 to 75 and they're all getting this on their level. They're celebrating this with us.

HARLOW (voice-over): There have been ups and downs. Band members have come and gone. But the glue that keeps them together they says it's a musical democracy.

RAY HERMANN, SAXOPHONIST: It's a total family. It was like immediately you feel like you're just, you know, one of the guys and they bring in. And it's not like, you know, you have to be over there or don't play too loud or, you know. And being a sax player, too, getting to play with, you know, these two guys right here that, you know, it's just -- the best horn section I've ever played with and their talk about democracies, we're always talking about phrasing, talking about music. It's wide open.

HARLOW (on camera): As the newest, youngest member of Chicago, what is it that makes the decade not matter when it comes on the radio?

JEFF COFFEY, BASS/VOCALS: It's just become the backdrop of millions of people's lives. And when they come to the shows, they bring back those memories of where they were when they heard these songs before. And I think that's why it is so transcended and it's timeless.

UNIDENTIFIED FEMALE: The music talent is amazing. Transcends all ages.

UNIDENTIFIED MALE: You can't find bands producing this kind of music today. This is it.

HARLOW (voice-over): The great Jimi Hendrix gave Chicago advice they'd never forget.

PANKOW: He said, just keep giving it back, paying it forward, you know, share your gift. And we did.

UNIDENTIFIED MALE: We all lived in a little house under the Hollywood freeway. Each guy had a shelf in the medicine cabinet. Each guy had a shelf in the refrigerator. Whoever get to take the last shower got the cold shower.

IRIS IMBODEN, DRUMS: I joined about 26 years ago. I actually saw the band when I was 16 years old before the first album came out. And I couldn't believe my ears and eyes. I mean, it was the best band I'd ever seen in my then 16 years. And I flappingly said, if somebody who said, you know, you are going to be the drummer, it would be, yes right, and I'm Napoleon, you know. I wouldn't have believed it. So I'm still pinching myself. I really am, Poppy.

LOU PARDINI, KEYBOARD/VOCALS: When I joined seven years ago, I tell the guys this often, that I waited a long time to be in a band where everybody gets a little bit of the spotlight and also supports the others at times.

HARLOW (voice-over): There have been decades more wild than others like their years at Caribou Ranch.

UNIDENTIFIED MALE: The Caribou Ranch happened to be very close to a college town. There's a ton of drugs. There are really good drugs. And then it ended up just kind of like being a party in the Rockies.

PANKOW: There was nothing else to do. You know, chase elk. You know.

HARLOW (on camera): You could have chased elk.

PANKOW: I actually fell in love with an elk. I got to the point where they started looking good.

HARLOW (voice-over): Chicago was flying high, but then came their heartbreak. Original guitarist Terry Kath died suddenly, accidentally shooting himself.

UNIDENTIFIED MALE: That made us all -- pulled us short. And we kind of didn't know what we were going to do.

HARLOW (on camera): You've said that you are still working through Terry's death.

LAMM: Yes.

HARLOW: Decades later.

LAMM: I -- to be honest with you, I give Terry a look every night when we play "Saturday in the Park." There is a lyric in there that refers to him. I still dream about Terry.

UNIDENTIFIED MALE: He was like the musical leader of the band at the time. He would want us to stay together, as well.

[17:55:04] HARLOW: You loved him?


UNIDENTIFIED MALE: He was very lovable.

HARLOW (voice-over): They did, they say, what Terry would have wanted. They stayed together and kept playing.

UNIDENTIFIED MALE: Please welcome, Chicago.

HARLOW: Chicago has toured every single year of its existence. Finally in 2016, the ultimate honor.

UNIDENTIFIED MALE: It is my honor to finally induct Chicago into the Rock and Roll Hall of Fame.

HARLOW: But no sign these rockers are slowing down, not even for a second.

UNIDENTIFIED MALE: I've always contended that music, creating music keeps me in a childlike state.

HARLOW (on camera): Yes.

UNIDENTIFIED MALE: That is not too bad.

HARLOW: That's a good state to be in.


UNIDENTIFIED MALE: We want it to be as organic as it started out being, and that's why we are still together.


HARLOW: Difficult assignment, I'd tell you. My thanks to the band. If you want to see more watch now more than ever, the "History of the Band Chicago." That is tonight 8:00 p.m. Eastern only right here on CNN.

Straight ahead, a New Year's Day attack claiming the lives of 39 people at a nightclub in Istanbul. We will show you the first video of the gunman.

You're live in the CNN NEWSROOM.


HARLOW: As the New Year begins, we want to take a moment to remember the first responders who lost their lives putting themselves into harm's way to keep all of us safe. In 2016 alone according to the U.S. Fire Administration, 89 firefighters were killed on the job. Some of them volunteers. Meanwhile, according to the Law Enforcement Officers Memorial Fund, 136 officers died in the line of duty in 2016. Of those, one just on Friday. Pennsylvania State Trooper Landon Weaver was shot and killed while investigating a domestic incident. The governor calling his death the ultimate sacrifice.

Our thanks to all the brave men and women who wear the badge.

Top of the hour, 6:00 p.m. Eastern. I'm Poppy Harlow in New York and you're live in the CNN NEWSROOM. We begin with the first terror attack of 2017.