thanks for watching. i'll be back later tonight an hour from now 8:00 p.m. eastern for cnn's special live coverage of president obama's final state of the union address. thanks for watching. a special edition of "erin burnett out front" starts right now. next breaking news, american sailors seized by iran. revolutionary guard arresting ten american sailors in the persian gulf. all of this as the president prepares to come here to deliver his final state of the union address. how will he respond tonight? hillary clinton one-on-one. bernie sanders beating her in iowa and new hampshire. could she lose the nomination again? let's go "out front." good evening, i'm erin burnett "out front" tonight. ten american navy sailors,

seized tonight. iran's news agency announcing those sailors are under arrest. u.s. officials say the sailors were on a training mission traveling from kuwait to bahrain. it is a major embarrassment for the obama administration coming hours before the president will be here delivering his final state of the union address. the president was expected to toss out the conventional script for his speech and trump it what considers his successes. on top of that was the iranian nuclear deal. we are live at the white house. we begin our coverage with our national security correspondent jim sciutto. this is not good news for the president. >> very quickly we heard from administration officials, defense department officials making the case this was not a hostile act. early on they said they had assurances the sailors were safe and would be released quickly. that said as we learn new

details, defense officials telling us the iranian revolutionary guards who seized these navy boats seized the communications equipment of those ten u.s. sailors so they cannot be in contact with their mother ship. that led to a search by helicopter. only by helicopter the u.s. navy was able to determine those two ships and sailors were in iranian custody. by iran's own description, they used the word "arrested." they did not say rescued or given a port of call, they used the word "arrested." >> jim, what do you make of the timing of this? iran is acutely aware of important events in american politics tonight. is the crowning moment for the president of the united states and his administration, his final state of the union address. >> that's right. there is no immediate evidence this was planned to take place tonight.

who could have predicted would you have two u.s. small navy boats, one of which had a mechanical problem or navigational error that put it into iran's territorial waters? but as it happened, you have them go into the waters and iranians make the decision to detain them. sounds like a cliche to say timing, whether accidental or not couldn't be worst. the president has his final state of the union speech tonight, a big part of his message is going to be that diplomacy works. two examples will be normalization of relations with cuba and the iran nuclear deal. the nuclear deal is meant to be implemented as soon as this weekend. all those punishing economic sanctions to be lifted as soon as this weekend. you have many people in that building where you're standing right now, both republican and democrat who oppose the iranian nuclear deal. an incident like this will give

them more fuel. breaking news unfolding as the president is in the final moments preparing his state of the union address. jim acosta is live out front in the white house. this is not something the president wants to deal with before he addresses the nation. >> republicans say it does. this is like an october surprise right before the state of the union address. the president has been briefed on this matter of iran holding these ten american sailors. the white house is trying to urge americans to remain calm about this situation. officials expect the matter to be resolved promptly and these sailors will go on their way as soon as possible. these officials are cautioning it's overnight in iran so not the best time for the sailors to continue with their mission. the white house saying that the state of the union address won't be changed. the president was going to tout

the iran nuclear deal as part of his defense of the obama doctrine later tonight in the state of the union address. obviously, this is going to be a much harder sell to make to the american people. republicans are going to say once again this is the reason why you can't trust iran. while the white house has no plans to change president obama's speech, you can bet that nikki haley speech might be revised to reflect what's happening in the persian gulf. >> good point. "out front" former cia operative bob bear. bob, you believe this is extremely significant. >> i think it is. it couldn't have come at a worst time. our relations with iran are supposed to be on the mend. there is a rational power. taking two navy boats like this is a huge setback for this

administration. the one success obama has in the middle east is the iranian nuclear deal. we still have a "the washington post" correspondent in jail, missing ex-fbi agent disappeared in iran. it's a rocky time all around. >> colonel, they are saying, iranians are saying, the press there, revolutionary guards arrested the americans. that's the word they are using. they are using the word "snooping" and calling them passengers, not necessarily members of the military. these are crucial words. >> they are. especially the part about passengers. once you use the term passenger and don't use the term sailor or soldier, what that means is the geneva convention protections established by international law may not be invoked by the iranians. legally they can't do that. they will attempt if they are calling them passengers. >> the administration saying they will be released momentarily. that does not fit with the words we are hearing out of iran.

>> definitely not. the reason this is a serious issue because it's easy to accuse somebody of espionage even if they've never done it. that is one of the things i noted with jim sciutto's report. he talked about the communications equipment they were looking at while trying to find not only how they communicated, but what they were communicating. they are trying to find out if they can break the codes used on that ship. >> david, this becomes a significant story. the president is not going to change his speech but this is significant. >> it would be a mistake for the president not to change his speech. he must talk about this and say we think it will be resolved quickly. this has become a pivotal moment in the middle east and for his presidency. the thing u.s. officials have been briefing reporters saying they think these sailors will be released tomorrow. if they are not released

tomorrow, if this drags on -- >> they seemed to imply momentarily. >> exactly. if they continue to do that, there is going to be hell to pay back here in this country starting in these halls in this congress. there's already been growing suspicion iran was not doing all it promised in the nuclear agreement. we have understood with the nuclear agreement it not only would contain their nuclear program but they would behave themselves constructively. that is exactly what they are not doing now. two weeks ago they are harassing a u.s. aircraft carrier, firing missiles within 1,500 yards. they've been working with hezbollah, firing missles in tradition to a u.s. resolution. it's their extremists and politics trying to derail the nuclear agreement. they could very well do that.

>> bob, it sounds like the down playing of this might be a big mistake, in terms of the words out of the u.s. >> i think he has to down play it at this point. we frankly don't know what is going to happen. as david said, this is the islamic revolutionary guard corps. they are fanatics and they don't like the united states or the nuclear agreement. they oppose our alliance with the saudi arabia. they have every reason to hold these sailors indefinitely. i'm not saying that will happen but could be another hostage crisis that could cloud this administration's foreign policy in an ugly way. >> you brought that up about a hostage crisis. >> if this becomes a hostage crisis like the kind jimmy carter had in tehran when men and women were held 44 days, it unravels his presidency. they released them the day ronald reagan became president. if they come out quickly, president obama will be fine.

if they are held, this gets worse and worse for the whole environment of trying to work with iran. it could blow this nuclear corps out of the water. >> this makes the sunni shiia divide more pronounced. then you have the shades of pueblo related to the iranian hostage crisis. you've got sailors, a boat two, ships and a real problem with this. >> thank you all very much. the president as we said finishing the final touches on that speech. we'll see whether he will address this head-on tonight here on capitol hill. "out front" next, hillary clinton trailing bernie sanders in iowa and new hampshire. is her campaign in panic mode? she is "out front" next. >> we are waiting donned trump about to speak live to supporters in iowa. can he stop ted cruz? >> how will the president defend his iranian nuke deal after the arrest of sailors?

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[so i use quickbooks and run mye entire business from the cloud. i keep an eye on sales and expenses from anywhere. even down here in the dark i can still see we're having a great month. and celebrate accordingly. i run on quickbooks.that's how i own it. tonight warning signs for hillary clinton. two new polls showing bernie sanders beating hillary clinton in two new states. in iowa a five-point lead over clinton. in new hampshire topping clinton by 14 points. nationally, her lead over

sanders has dwindled. a "new york times"/cbs poll showing clinton leading 48% to 41%. clinton is now using the best weapon she has to fight back, sending daughter chelsea on the campaign trail today for the first time. >> i never thought we would be arguing about the affordable care act or obamacare in the democratic primary. senator sanders wants to dismantle obamacare, dismantle the chip program, dismantle medicare, dismantle private insurance. >> is the clinton campaign worried? >> secretary clinton, thanks so much for sitting down with us here in iowa. >> thank you, allison. >> we are in ames, iowa, where the temperature as we speak is one degree. i know you have been going to countless campaign events here

and i'm wondering when you get up in the morning in iowa if there are ever times you question your life choices? >> actually, no. i grew up in chicago. i'm used to cold weather. it doesn't bother me. in fact, i'm somewhat reassured there is a real winter, that we are actually seeing snow and lower temperatures. but i get up every day whether i'm in iowa, new hampshire, wherever i am in the country and look forward to the day because i find the opportunity to go out and listen to people, hear their stories, give them my views about what i think the next president should do very energizing and reinvigorating all the time. >> let's talk about the tightening race between you and bernie sanders. bernie sanders is speaking to reporters monday night in iowa. he said your campaign is in, quote, serious trouble. is that how you feel? >> not at all. in fact, i have always known that if you are going to run to

be president, particularly in the democratic party, it's a long, hard, challenging road. so i've been in these elections before. they always tighten up as people begin to make up their minds, as they look at the candidates, totally predictable. i feel really good about the campaign organization that i have. a caucus is different from a primary. it takes a lot of intensive work to convince people to come out on a cold monday night, spend a couple of hours in order to stand up for your candidate, but i'm asking iowans if they'll stand up for me on caucus night. i will be standing up for them all through my presidency. >> there is a new quinnipiac poll out just about one hour ago in which bernie sanders is now beating you in iowa. it is 49% to 44%. this is the first time that this has happened that he's been beating you in iowa since september. we are 20 days out.

does he have more momentum than you? >> the funny thing is after that poll came out about an hour later there was a ppp poll where i was leading him by the same margin about six points up. i don't pay attention to this. i don't feel that it's a good reflection about who will actually come out on caucus night. i can only tell you that the energy, the enthusiasm, the excitement of my volunteers, my organizers, the voters who come, who sign up on commit to caucus cards is just building. that's my experience. so i'll let people poll and figure out who is going to show up. i'm looking at people who are showing up, making up their minds and trying to convince them to come out and caucus for me. >> why don't you feel that the polls are good reflection of what's going to happen in the caulk k us? >> because they are so unpredictable. it's gotten increasingly difficult to poll. i think you would have to add a degree of difficulty to polling

for a caucus. that's been my experience. i've watched this a long time. i've had a prior election where i campaigned in iowa. i just put that aside. i'll let pundits and others worry about who's up and who's down. i get up every day like we were saying, going out there, making my case, drawing the contrast because i have the highest regard for my two opponents, but there are real differences. we need a spirited debate. after the first of the year, a lot more people start paying attention. now i know it's the make or break time, people make up their minds. >> bernie sanders is also winning in new hampshire. not surprising. he is from a neighboring state. have you considered what would happen if he wins in iowa and new hampshire what your plan is? >> i don't think about that. i'm going to do everything i can then go to the primary. this is a national campaign. we've been organizing in south

carolina, nevada, a lot of the march 1st states, march 15th states. remember, i campaigned all what it into june last time. i have always thought that given the unpredictability and changes in people's concerns going into this election, that we wouldn't know exactly how the outcome would be for a couple of cycles of these primaries and caucuses. i'm going to do my best to convince more iowans to come out and caucus for me. even though as you say, senator sanders and a neighbor never lost in new hampshire, i'm going to take that challenge on and do the best i can to get people in new hampshire to support me, as well. >> vice president joe biden offered his thoughts to cnn on why he thinks bernie sanders is resonating. he thinks it's about senator sanders' position about income inequality. the vice president said, "it's relatively new for hillary to talk about that.

that's been bernie's. no one questions bernie's authenticity on those issues." >> the vice president, who i respect and regard as a friend, hillary clinton has good economic policies that are thoughtful and on and on. look, i have been working toward closing the gaps between people, poor people and well-off people primarily all my adult life. i went to work for the children's defense fund. i helped to reform the education system in arkansas. i was a legal services lawyer defending poor people. i went to work to try to make sure that we got health care in the beginning of my husband's administration because of so many people who were left out and were uninsured. i have been on this issue in many different ways. how do we make education more equal? how do we make health care more equal? of course that's tied to income

equality, but there is a broader range of issues i have a long record of addressing. when i was in the senate i took on corporate executive pay. a lot of the abuses i thought were there. i took on these derivatives and credit default swaps that contributed to the collapse of the economy and the great recession. i stood up to wall street. i called them out. so i have a very long record. i have a broader agenda. it's not the only thing i talk about because i think you have to view the quality of opportunity and how we deliver that in the 21st century for many different perspectives. >> since you have been devoting much of your career to talking about this, why do you think the vice president would say it's more in bernie's wheelhouse and about his authenticity? >> oh, i don't know. i have a lot of regard for the vice president. i think today he clarified what he said and said he was talking about me when i was secretary of state. when i was secretary of state, i

couldn't talk about domestic policy. there is an unwritten rule, do you not meddle in domestic policy when you're secretary of state or secretary of defense. for four years, despite a long career both in and out of public service where i have been relentless talking about these issues, there were four years where i did not. i talked about how we were going to get iran to the negotiating table and prevent them from getting a nuclear weapon, how we'll deal with a rising china, women's rights, something that goes to the heart of inequality. i had a different agenda because i had a different job. >> you didn't take biden's comments as a slight? >> no. not at all. >> you are introducing your tax plan. one of the headlines is you would impose a 4% surcharge on incomes over $5 million. i believe that would raise $150 billion over ten years. did that go far enough addressing income inequality?

>> we've got a variety of proposals. not only the 4% surcharge which i call the fair share surcharge. the buffet rule which would have a minimum tax rate for people making more than $1 million, limiting deductions to 28% with a charitable exception. going after a lot of the subsidies that, for example, still subsidize the oil and gas industry about $6 billion a year while we have to move toward a clean renewable energy future. so i have put forth plans, paid family leave, tuition, debt-free tuition for public colleges. capping prescription drug costs and much more. it would cost about $100 billion a year, all of which i pay for. in contrast, senator sanders has some very big ideas, but hasn't told anybody how he would pay for them. he promised he would roll out his tax plans before the iowa

caucus on february 1st. if you wait too long, nobody will have a chance to see them or analyze them. so i am very clear about what i would do and how i would pay for it. >> another point of conflict is on gun policy. we just watched this very emotional event this morning. >> yes. >> that you were involved in where this mom who lost two children -- >> right -- >> to gun violence got up and spoke. it was heartbreaking to hear her. it sounds like she lost her children to criminals. how would you stop that? >> this is a very big difference in this campaign. as you saw, i received the brady campaign endorsement today and both the woman who introduced us to the stage and the head of the brady campaign had lost family members. it was really hard standing up there because i have held the hands of and listened to

countless people who lost family members to gun violence. i agree completely with the president about us having to take action now. we lose on an average 90 people a day. it has to stop, allison. i've been in this campaign advocating for comprehensive background checks, closing the gun show loophole, closing the online loophole, closing what's called the charleston loophole. there was a loophole, my opponent voted for it, senator sanders, at the end of three business days you get that gun whether they finished the background check or not. the killer in charleston who bought that gun, if there had been a little more time, it would have been discovered he should not have been able to buy the gun because of a federal record. we have saved a lot of lives. i can't put an exact number on it. because of the brady willowy senator sanders voted against five times, more than 2 million people, 2.4 million purchasers

have been stopped from buying guns. so we are talking about violent criminals. we are talking about domestic abusers. we are talking about the dangerously mentally ill. we are even talking about terrorists because the republicans won't close the loophole so that people on the no fly zone can buy guns. i feel passionately about this. the cumulation from sandy hook to the fact we have so many mass killings motivated the president, and i am so proud to support him and i want to make this a voting issue in this campaign. next, hillary clinton ongoing head-to-head against donald trump. >> yes, it would be amazing. i would look forward to it. >> donald trump tonight live at this hour, there he is, addressing the breaking news about iran holding ten american

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welcome back to a special edition of "out front." i'm live tonight on capitol hill. the president is about to deliver his final state of the union address tonight. the president giving this speech with an eye on the 2016 election. tonight, more of allison's interview with hillary clinton where she tells us how she really feels about running against donald trump. >> i want to talk about an issue donald trump wanted to make an issue in this campaign. that is allegations from your husband's past. he is going further than that. he is making it about you. he is saying you are an enabler of bad behavior and of sexual assault. what is your response to donald trump? >> i have no response. i'm going to let him say whatever he wants to say. he can run his campaign however he wishes. i'm going to keep talking about what the next president will have to do starting january 20, 2017. i have deep disagreements with what he's proposing. his tax plans would cut trillions of dollars of taxes

from the wealthy and corporations. he doesn't believe in equal pay. he thinks american workers are already making too much. i'm going to draw the contrast with him that i think the american people are interested in seeing. >> when someone accuses you of being an enabler of sexual assault don't you need to respond to it? particularly since this is an issue you wanted to talk about on the campaign trail. you say survivors need to be believed and they need to be heard. so when he's accusing you of doing something that is the antithesis, don't you need to address it? >> i'm going to let the american voters decide. >> i have a few more questions. donald trump was on "the tonight show" and asked about the possibility of you two running against each other. he said that would be, quote, an

amazing thing. >> yes, it would be amazing. i would look forward to it. look, i think this is serious business. campaigns always have some great stories and great characters. that's part of the political process. this is really serious business who the next president is. we are either going to build on the progress we made or see it ripped away. we are either going to defend human rights and civil rights and women's rights and gay rights and voting rights and workers' rights and all the rest that is at stake or we are going to turn the clock back. that's why i have tried to very clearly explain where i stand on all of these issues because the stakes are so high. if i'm fortunate enough to get the nomination, i will run hard against whomever the republicans nominate. because they represent a brand of politics and policies that i think would hurt our country.

i don't want to see that happen. >> let's say you get the nomination. let's say you win the presidency. >> yes, let's say that. >> on day one you walk into the oval office, what's the first phone call you make? >> well, i think the very first phone call would be to whoever i've asked to be the chief of staff of the white house. let's get a meeting together, let's get our agenda together. there's a lot we have to get going. the earlier we start, the better we'll be off and we'll get more accomplished. because i want to really think hard if i do get the nomination, right then and there, how we organize the white house, how we organize the cabinet. that's the legislative agenda? the time between an election and inauguration is short. you can't wait. you can't take anything for granted. you have to keep working as hard as you possibly can, but i think it's important to start planning because we know what happens if you get behind in getting your agenda out and getting your

appointments made. you lose time. you're not doing the work that the american people elected you to do. >> before i let you go, i definitely want to ask you about your granddaughter. you talk about her on the campaign trail. today is i believe or recently chelsea is making her first appearance on the campaign trail. >> yes. >> she said she believes that you becoming a grandmother is a driving force behind your campaign. how so? >> well, she's right. because i feel very fortunate. i like to point out i'm the granddaughter of a factory worker who came to this country as a young immigrant. went to work in the lace mills in scranton, pennsylvania. here i am three generations later asking people to vote for me to become their president. and we have this amazing 15-month-old grandchild with another on the way next summer. so i think a lot about the future, but i think not just about her future because we're

going to do everything we can to make sure she has the best opportunities life can offer, but i think about what kind of country she'll become an adult in and what kind of world will be waiting for her. i want to make sure it's not just our grandchild but every child who has the opportunity to go as far to fulfill their god-given potential as possible. a lot of that depends on the kinds of decisions that our presidents make. it's not, you have to have family support, you have to have community support. i wrote a book called "it takes a village." i understand that. do you kids have health care? that's why i created the children's health care program. too many didn't. i'm for early childhood. too many kids come to school unprepared. how about college affordability? too many kids are weeded out because they can't afford to start or stay. i go through the list of what is really dampening the opportunities that young people in our country have right now. i want to be the president who unleashes that potential again. >> when you think about your grandchildren's future, are you

worried or hopeful? >> i'm always hopeful, allison, always hopeful. i think this is the greatest country. when i listen to the negative comments made about our country on the campaign stage predominantly by the republicans, look at what we've come back from. it was a republican administration under which we had the great recession. that is just a fact. president obama inherited an economy that was losing 800,000 jobs a month. i don't think he gets the credit he deserves for getting us standing again. i know choices really matter in politics, but i am absolutely committed to the belief, the conviction that i have that our country is resilient, we're strong, we're smart. given the right leadership, we can do anything. that's why i actually am quite optimistic and confident about the future. >> secretary clinton, thank you so much. >> thank you, allison. it's great to see you. "out front" next, donald trump live in iowa at this hour. ted cruz punching back at him who is going to win the iowa

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breaking news. iran holding ten american sailors in the persian gulf tonight. the white house spokeswoman saying the president will not address this in his state of the union. a senior official tells cnn the sailors will be released in the morning. we'll see when they are released. donald trump speaking in a big rally in iowa moments ago was quick to jump on the story. >> it's just an indication where the hell we're going. hopefully they get released and fast. it seems to be an indication where we are going. that iran deal is the dumbest deal i've ever seen. >> trump is out working for every vote in iowa as he finds himself neck and neck with ted cruz. >> reporter: tonight ted cruz is hitting back at donald trump for questioning his qualifications for president.

>> the past couple of elections we saw the democrats thrilled they got the nominee they wanted to run against in the general election. it seems the hillary folks are very eager to support donald trump and the attacks that are being tossed in my direction. >> reporter: cruz suggesting it's democrats buying into trump's claims that cruz' canadian birth place could disqualify him for america's highest office. his sharper tone coming as he and trump are locked in a dead heat in iowa. >> four weeks ago, just about every republican in the race was attacking donald trump. today just about every republican is attacking me. >> reporter: trump is back in iowa tonight, just three days after his last trip to the hawkeye state, a state he says could be key to a huge victory. >> i would love to win iowa. we'll see what happens. i think i'm going to do great there. if we win iowa, we run the table. >> reporter: trump is banking on new caucus goers and big turnout to carry him to victory. even voters who waited in 2

degree weather to see him aren't fully sold. >> i'm really excited to see what he has to say. i have thought hard about who i am going to vote for and it's fun to be here and see what he is going to do. >> reporter: ensuring first-time voters turn out can be a heavy lift. >> reporter: will you turn out in caucus, one side or the other? >> if it's a little bit warmer, sure. >> reporter: the gop primary far from over. trump already sharpening his attacks on hillary clinton. >> he's got some guy who should be easy to beat. how can you lose like this? he isn't even a democrat. >> telling jimmy fallon, that's just a taste of what he has in store for clinton if the two go head-to-head in a general election. >> i haven't started on her yet. last week i did a little bit, i guess. we haven't even started. >> reporter: even claiming in a mock job interview his other

assets could give him a boost along the way. >> you want to tell me about yourself? >> well, i'm an extraordinarily handsome person. i have a beautiful head of hair. >> i noticed that. yeah. >> reporter: in just the last few hours, ted cruz ratcheted up his attacks against donald trump saying trump embodies new york values and cruz saying he would do better in a head-to-head matchup against hillary clinton than trump would. trump is here campaigning. you can see him behind here m iowa. he went after his cruz over his stance on ethanol and took another swipe at him over citizenship. this is turning into an all-out brawl. >> thank you, sara murray. you see donald trump speaking behind her. good to have both of you.

>> good to be inside, not outside. >> speaking as you heard that young voter say, if it's warmer, i'll go caucus. >> it's snowing outside. i'm a weather wimp. >> ted cruz starting to fight back. first he said i'm going to take the high road and not engage. maybe it's coincidence. as he was saying that he was weakening in the polls. now he seems to be fighting back. is ted cruz worried? >> he should be worried in the sense that the goal behind donald trump's attacks is being realized in the sense he is totally distracted ted cruz from his core messages. ted cruz wants to talk about immigration. he wants to be in new hampshire talking about national security. day to day the news cycle has been dominated by whether or not he is eligible to be president. it's an absurd attack. absurd attacks, when repeated over and over could have an impact. that's why i think you're seeing ted cruz might have an impact.

he is hitting back at donald trump. >> you call it an absurd attack, but ted cruz' own law school professor lawrence tribe says it's a real issue and the ted cruz he knows who believes in the original tuangiginal consti not allow ted cruz to be running for president. >> john mccain said it. i would love to peddle in this republican mess. when donald trump began to say this about president obama, very few republicans denounced the birtherism he was out there spewing. it's ironic that ted cruz who is trying to campaign in an awkward manner as somebody fiercely opposed to immigration reform, at the same time proud to be a son of an immigrant, he finds himself now having to somehow or another push back donald trump. this is a very awkward moment

for ted cruz. i don't know where he is going to get help on the republican side. >> should ted cruz go ahead and get someone to take this to the courts? donald trump said do it. it is true, if he is the nominee, someone is going to take this to court. someone is going to do it. >> i think they would lose. giving that credence to it by doing his own court action would land some validation to the charges. the most important thing to do is what he is doing today. sharpen his attacks against donald trump, draw distinction on the seriousness of each other's candidacies and get back on the core issues that helped vault him to the front. values issues for voters, national security in new hampshire. >> what about hillary clinton here? what we have seen is a dramatic, things can change quickly and a poll could be a poll. she said she doesn't pay attention to the polls, but she was armed with a competing poll when she said that. you have her losing to bernie sanders in iowa and new hampshire. by a wide margin in new

hampshire. in 2008 the polls tightened. she was the presumptive nominee. all of a sudden she lost to barack obama. everyone said it can't happen again this time. it's campaign is saying. the campaign is saying we thought this would happen, that the race would tighten up. i think they're absolutely right. a lot of undecided people -- >> did they really think that would happen? >> look, there's a sweet spot within the democratic party and bernie sanders has found it. he's been able to mobilize young people. he's out there energizing the democratic party, talking about issues that democrats care about, whether it's the income from gap or student loans. i love all of them. i'm neutral. they need to figure out their closing argument and they need to stick to it. what is the closing argument? why is she running? she started saying she's a champion, now she's a fighter for all. get that closing argument so democrats can rally around her, and at the same time bernie is

going to energize and make a difference. >> she made women a part of this campaign. dump that is not made bill clinton's transgressions are part of the campaign. some people think it's fair, but -- >> i reject the analogy of bill clinton and bill cosby. i actually know both men, but here's what i would like to believe. in the end of the day, elections are about futures. whether donald trump watts to brump up birth rights or past sexual misconduct, fine, that's donald trump. he likes to play in this ballpark, but hillary clinton has to make this election about the future and her vision. she's going to have a fight on her hands with bernie sander. >> what about women, kevin? this is an issue she's taken on. this is why the bill clinton conversation might be relevant. she says she's passionate about

it, yet in the latest polls bernie sanders is now winning among women. that is a significant thing. >> i think that's why even though the democrats will argue it's an old issue, it's still a new shy. the democrats have made the war on women a central part of their contrast with republicans, and when she has the history or bill clinton has the history he has, she can look hypothetical. one of the things that voters don't like about hillary clinton is that she's not trust worthy or she doesn't relate. those are the type of things that come to the forefront when they try to prosecute it. that's why i think so many people have gravitated towards donald trump. they like the fact he is taking the fight to the democrats that maybe in the past some republicans have tiptoed around, and that's why i think you're seeing it become a whole new news cycle. >> now i'm getting warmed up. i can go outside. equal pay for equal work, that's a women's issues. giving the women the full range

of reproductive health care, and tonight we'll hear from president obama, who essentially lowered or health care premiums because we're women -- >> butting i think sexual harassment is an issue that women care about. >> violence again women in the workplace, sexual assault, harassment, we have championed. we're not going to let these issues somehow or another go by the wayside because donald trump is raising his loud voice. >> but to his point. >> what is his point. >> if you like at bill clinton's history, it becomes relevant. >> the misconduct of bill clinton in the 1990s that all of us condemn. i was there. all of us condemn. if we want to relitigate it let's get ken starr, but if you talk about issues women care about today, this is why we need presidential campaigns to talk about the future. if we want to talk about the past we can litigate that, but bill clinton did a good case of

promoting women's issues and that's different that is the discretions, which he has apologized before. the white house spokeswoman says the president will not address the american sailors now held by iran tonight. can he afford to ignore their arrest? i think it landed last tuesday. one second it's there. then, woosh, it's gone. i swear i saw it swallow seven people. seven. i just wish one of those people could have been mrs. johnson. [dog bark] trust me, we're dealing with a higher intelligence here. ♪ the all-new audi q7 is here. ♪ they are. do i look smarter? yeah, a little. you're making money now, are you investing? well, i've been doing some research.

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we are live in the nation's capital tonight, where president obama will give his final state of the union address. he has just been briefed on the breaking new this hour, iran announcing it has arrested ten american sailors, the u.s. officials telling cnn the sailors will be released in the morning. another official saying the navy boats may have run out of gas or had mechanical issues, but an iranian news agency said they were suspected of if snooping, and were arrested. david gergen is with me again. and the white house's spokeswoman said the president does not intend to -- >> the president wants to claim

credit, as he should for his accomplishments, good for him, but if you want to be credible on foreign policy you have to acknowledge this very evening we have ten sailors basically being held hostage. we don't know -- all of us want them out, of course, but to be president, you have to be square with people. you have to say, look, here are the great things. we have this problem here, but here's the rest of it. >> especially when it comes with his iran deal, which is they have put forth as perhaps the greatest achievement of his presidency. >> absolutely. they want to go down in history for obamacare and the iran nuclear agreement. there are others, but those are the big ones. for the iran deal to stay together, people have to believe he's being straight with them, telling the complete truth, not shading it in some way. if he doesn't talk about this, at least acknowledge it. he should at least acknowledge that we expect to get them out in the morning and at the we don't, we'll have problems.

>> we need to say that. >> don't screw this thing up, you'll blow a hole in the middle of the nuclear court. >> we'll see if he changes his mind. >> david gergen, thank you very much. thank you all. our special coverage of president obama's final state of the union address starts now. we're following breaking news, as president obama prepares to deliver his last state of the union address. iran has taken ten american sailors into custody. >> we're just learning about some surprises in the president's speech that the white house has kept under wraps. at the white house right now he's preparing for the biggest speech of his last year in office. soon he heads to the capitol to face the nation, and hear the words that remind the world that he's still in charge. mr. speaker, the president of the united states.