. the new york city skyline got a remarkable new look. the blue glow could be seen as far as new jersey and coned was caused by an ark flash, whatever that means. thank god no one was hurt. thanks so much for joining me, everybody. happy new year. inside politics starts right now. welcome to inside politics. john king is off. on day seven of the shut down, the white house is out to reclaim the narrative. they say it's not the president who owns the shut down. it's nancy pelosi. republican strategists weigh in on which democrat they hope runs

against the president. they want someone just like hillary clinton. as the president threatens on twitter to close the southern border if a call is not built, one democrat said that could impact trump's reelection chances. >> the president lives in this delusional world fed by fox news and a couple of right wing talking heads and does not connect actions with consequences. if you close the border, you reinvite huge swings in the stock market and dejeopardize t progress we made and invite a recessi recession. >> we're begin with a shut down and the week old standoff could go into the new year. democrats and republicans are not talking. the house and senate canceled votes for the remainder of the week. the president's closest ally

said brace for a long shut down. the white house won't say what kind of compromise they would accept. the leadership said no compromise is possible unless the president abandons his wall and the incoming acting white house chief of staff said democrats walked away from the negotiating table and left town. still in town for the foreseeable future is the president. the president will stay in washington for new year's eve instead of jetting off to mar a lago. he is marooned in the white house, blame gamesmanship and threatening to close the southern border if he doesn't get the wall money he wants. the white house is taking active measures to shirk responsible and shift it to representative, nancy pelosi who is likely to be the next speaker of the house. >> she is unwilling to actually do anything until she gets her speakership. >> this comes down to

mrs. pelosi's speaker should. left to his own devices, the senate democrats would cut a deal, but they are protecting mrs. pelosi. she doesn't have the votes and if she cuts a deal before election on january 3rd, she is at risk of losing her speakership. we are in this for the long haul. >> phil mattingly is on capitol hill. you have been there for the last couple of days. it looks empty there behind you. i don't know what you can report this morning because there doesn't appear to be anything happening on the hill. >> other than every single reason you listed as to why things are not going well, everything is great minus the fact that there is not a single lawmaker in town and everyone accepted the fact thatting in is going to happen in 2018 and likely not until the next question and real question about whether anything will happen when the democrats take the house. that doesn't mean democrats are

not strategizing. what the white house said is not wrong. they have not moved off of initial positions. $1.3 billion in border security. it could be fencing or repairs along the border. what i'm told is democrats are mulling three options and may send multiple to the senate after they are sworn in. one would be a repeat and the senate passed a stop gap bill that would reopen the government. more than 25% is currently shut. another is maintaining the funding through the end of september. there is also an idea being kicked around about separating the homeland secured department appropriations bill where the ball would be located from the other six outstanding bills, packaging those together and sending them over in the short-term for the homeland security bill. thoser the options they are

answering. senate majority mitch mcconnell was burn and wary about moving on anything. the president made clear he is not going to sign off on what house democrats are considering. that is why the stalemate is not a days or a weeks thing, but could be longer than that. >> thanks so much. here with me to share the reporting and the insights, katherine lucy with the associated press. joining us from chicago, we have herndon with the "new york times." let's jump right in here. you have this morning a very active president on twitter, not surprisingly. ramping up his rhetoric, talking about closing down the southern border and cutting off aid to the countries. what is the goal and is there a strategy to reclaim the narrative and is this working?

>> the president is frustrated and he wants to take over the conversation. he wants to push this idea that he is doing things. that he is seeking to get something done. he wants to reassure his supporters and base that he is trying to do everything he can and sees that as a key promise and he doesn't want to suggest he is backing off. you are seeing the effort to frame the shut down he would be happy to take the mantle for as a responsibility now of others. you saw that with not just the president, but his advisers, trying to suggest that this is up to pelosi and drive a wedge or suggest that between pelosi and schumer. they are hitting on a message that are pushing off some of the blame. >> they are fanning out on tv over the last couple of hours. here is mick mull vapy talking about a possible compromise with

the wall. >> if you are at $5 billion and i'm at 1.3, maybe there is a place in between we can compromise. it makes sense and see if there is someplace in the middle. >> what deal are you willing to accept? >> it seems like the president very much tracks them, too. what do you feel like they are willing to accept from the president? >> i think right now it's immaterial. we will get into the new year and democrats take control of the house and all of this has to do with the politics of who ends up taking the blame for the shut down long-term. this is somewhat of a long-term proposition. the president said he would own it, but after democrats take control and start passing spending bills, there is going to have to be a compromise

between them. voters will make a decision at some point who seems to be the most amenable to compromising and who is the most stubborn. this begins with the president in a little bit of trouble because he's the one that instigated this. usually they penalize what instigated the shut down because it's stupid politics. as the compromises start to move back and forth, they might start to make judgments about what side is more reasonable. the president is not in the poll position he assumes she in. once democrats have control of one part of the government, i think voters at large will expect althsz b little bit more. they can't say republicans control everything. it's up to them. it's not just up to them, but we will see how wylie speaker nancy pelosi is when she has to then corral a democratic base and say

look, we are not going to give the president everything, but we have to compromise somewhere. >> one of the things you hear from his aides at this point is they are not talking about a wall in the ways he is talking b. here's mick mulvaney again talking about a barrier. >> we are building a barrier. that's why the government is closed. the president is not willing to give up on the southern barrier. >> the moral thing to do is keep it shut down until you get a wall. how in tune to you to the compromise that makes it look like the republicans are caving again. that is a real thing that has to be factored in, right? >> we are not compromising on the importance of border security. >> there you have it again. the fox guy talking about the wall and mulvaney talking about barriers and border security.

>> they would love to use it which was talking about what they have been talking about since the george w. bush administration, a mixed bag of options to keep security on the southern border. sometimes it's invisible barriers. it's something that the democrats voted to improve before and immigration bills that have not made it through congress. that's not controversial. the driving home about the wall, wall, nothing else but a wall. what is the president going to spin as a wall to his base. you can't put a wall along a river. >> imminent domain. >> we can get into the nitty-gritty, but a wall along the entire border is an impossibility. we heard him use other terms. wall or whatever you call it. >> beautiful. >> the most beautiful you have seen. >> this is not the wall in terms of the wall. the term wall, we are talking the last mulvaney clip talking

about numbers, we are talking about single billions. that's a drop in the bucket when you talk about a federal budget over $4 trillion a year. this is more about setdi isetti terms about making sure they don't give something for nothing. democrats want to see other immigration compromise. he needs to get the whim. if it was just about the dollars or the terminology, it's an easy deal to make. it's so much bigger than that. >> here's cory. another adviser or close ally speak being what people would accept. >> what is acceptable in your mind? >> we secured the southern border. you confident whether or not republicans will stand firm on this line? >> look, i'm not. i look at the last two years and

i see the failed leadership in congress when they had the money to pass for the wall. they didn't. >> so instead you have got him predicting they may cave. they passed clean out of the senate already. >> you have the democrats and republicans largely. president trump and his base and you have speaker pelosi trying to wrangle an enraged house democratic base. all of them have different moral calculus. you have president trump supporters who do feel that the congressional leadership caved too often on the issue. the only one last year, that's why you have the language from

the folks that you need the wall funding that happened for them to be satisfied. this is a moral issue for democrats. folks are right in saying the $5 billion is not a ton of money, but they refuse to give in on the moral issue. that's the difficulty that you see them and if it was just about dollars and cents, this may have been happened before. they see it as a red line they cannot cross. >> that was a quote from a democratic aide and what part do they not understand. that's where things stand right now. down, then up, then down again. a roller coaster ride for the market this is week. will the slide stop or continue into 2019? that's next. duncan just protected his family

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the stock market is just slightly up right now. you can see that on the screen, capping off a week of wild trading over political uncertainty. we have allison live from the new york stock exchange where she always is, i feel like. allison, yesterday when i had you here, the markets were way down. once by the end of the day, there was a mad dash and up over 200 points. what are they looking like today? >> today is beit looks like sto are struggling to find direction. the dow has been? negative and positive territory three times. it has been zigzagging and where it ends, nobody knows. for the swings we are seeing, they are not exaggerated or big. we saw the dow up as much as 160 and down as much as 130 points.

we will see as the day goes on. part of the reason you are seeing the skittishness is you have a cloud of uncertainty hanging over investors. the economic slow down happening globally. that's a big worry. unresolved trade situation between china and the u.s. and the recent federal reserve decisions are keeping the market on edge. who can forget the uncertainty in washington. that's a big one as well. whether it's the partial government shut down. whether or not the fed chair gets to keep his job next year. if you look at december, december is a month where you see gains for the market. this month very unusual even with the gains we have seen this week with the historic rise of more than 1,000 points, when all is said and done, all the major indeces are still down 10% for the month and it's the worst performing month since 1931,

during the great depression. >> the watch word is uncertainty. we will have to see what happens today. thanks for that report. next, decision time for democrats. why the crowded field could be a 2020 burden for the party. that whitens my teethdo i e or one that's good for my teeth? now i don't have to choose! from crest 3d white the whitening therapy collection with new spearmint and peppermint oil. it gently whitens, plus it has a fortifying formula to protect your enamel. look for a $1 coupon in this sunday's paper. it's a revolution in sleep. the new sleep number 360 smart bed is on sale now during our lowest prices of the season. it senses your movement, and automatically adjusts to keep you both comfortable. it can even warm your feet to help you fall asleep faster. so you wake up ready to make your resolutions, reality. and now, the queen sleep number 360 c4 smart bed is only $1299. ranked #1 in customer satisfaction with mattresses by j.d. power. plus, 24-month financing on all beds. ends new year's day. sleep number. proven, quality sleep.

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hopefuls, many democrat who is toyed with the idea of a white house run say they will make up their minds by early 2019. democrats and republicans are both waiting to see who is in and who is out? we have david drucker who talked to several republican insiders about 2020 and they named massachusetts senator elizabeth warren as the candidate the gop wants to see as the nominee. this is what one said. there is a lot of hillary clinton in her, said a veteran operative in d.c. who hails from the midwest and keeps a close eye on the heartland. she is elitist and doesn't appear very nimble. it would be hard for her to expand her base or reach into trump's base. close behind is cory booker and bernie sanders. he seemed to share that sentiment. here's what he had to say. >> i hope she is running for president. i think she would be very easy. i hope she is running. i do not think she would be

difficult at all. she will destroy the country. she will make our country into venezuela. i hope she would get through the process. it will be a long process for the democrats. >> you have this great piece in "vanity fair." they talk about elizabeth warren and cory booker and bernie sanders. there are people they are more afraid of. who did they cite? >> something to understand is that trump can win reelection. this is far from a foregone conclusion. there are strengths he brings to the table. you never know what happens when democrats is nominate something who is likeable and not under investigation. there are some that smack of hillary clinton and her flaws. they looked at cory booker and bernie sanders as politicians who do not have the ability, they believe, to build on a

coalition that can eat into what was trump's winning coalition in 2016 by getting a lot of those culturally conservative democrats even though they are fine with liberal economic policy and liberal foreign policy, to bring them back into an obama style winning coalition. you look at elizabeth warren who is not nimble on social media and the issues she had and cory booker who they say is a lightweight and they say these are people that are so progressive -- >> the boutique liberal. >> and not welcoming to people who don't follow a liberal line. it gives president trump a chance to attract voter who is really don't like him that much, but that's just a bridge too far. that's what happened in 2016. there was a lot of holding their nose and voting for trump because they couldn't vote for hillary clinton. she was that polarizing.

that's why republicans are worried about somebody where there is a lot of talk about joe biden and we know all of those reasons, but even beto o'rourke who they love to lampoon publicly, but privately they say someone who is progressive, but welcoming and not judgmental and doesn't ridicule conservatives for the views they hold. >> he is from a big diverse state of texas. speaking of diversity, you appeased in the times like on christmas day, you talked to black voters where elizabeth warren was. here is what one of them said about warren. she didn't sugar coat anything, but my question is will she keep black issues on the forefront asked a 39-year-old woman who backed senator bernie sanders of vermont in the primary. she warned against white politician who is talk about their black friends when around black audiences and move on.

the take away here is that black voters, at least the ones you talked to want white politicians with who talk openly about the discrimination that many black voters experienced. >> exactly. you have a diverse set of interests, but unifying things. the black voters at this event and throughout the mid-term season throughout the country want politicians who speak to issues that are not just racism and justice, but the same kitchen table issues we talked about all across the board and may affect black voters in a unique way. things like minimum wage and job increases and a housing crisis and also have a racial component to them. they affect black communities and black voters in separate fashions and want politicians who speak to the differences. i think it's interesting when i was talking to people about this speech, certainly you have

elizabeth warren as someone who is a hard line progressive, but also she speaks about race and injustice in a different way than like a bernie sanders did in 2016. that was someone who had to come around to being pushed to the issues where senator warren made a proactive approach to talk to these voters and talk in more of an open term about issues of racism and racial justice than maybe her progressive predecessors have. that will be key to washington in 2020. not all white progressives are created equal and some like senator warren and brown in ohio feel comfortable in black spaces and winning over those votes. >> that will be interesting to watch. 2020 in the ap talked to folks in iowa, a crucial state for the democratic primary. this is what one strategist said. the innocence wants to fall in love said an activist who

pledged herself to obama before he announced candidacy, but whoever we think stands the best chance, let's get out there and start door knocking. it's okay to just fuel in liall. >> in iowa, democrats take their role as the caucus is very serious. they take a lot of pride in being the state that put president obama on his path to the nation. that was a real love match. what you are hearing from a lot of people is sort of a heart versus head calculation and what they are saying is you don't need to rush in right now. we want someone with a message who can win and build a coalition. they are so galvanized to defeat president trump that they want the best candidate they can get, even if it isn't a great romance. >> we will see a lot play out in the senate. they are thinking about eying a

run. we will see what happens. the house judiciary committee is hiring lawyers preparing for a possible investigation of president trump after democrats take charge of the house. that's next.

topping our political radar today, president trump will be in washington until a deal over border wall funds is reached in the partial shut down of the government ending. according to mick mulvaney, that means that president trump will miss the new year's eve

extravaganza where ticket prices jumped to $1,000 a person at mar a lago that increased every year since donald trump was elected. there could be a legal fight over election results. the campaign over republican congressional candidate, mark harris filed an emergency petition to certify the results of the district race. harris holds a slim lead over dan mcgreedy in a tally, but the state elections board refused to testify the race while it investigates absentee ballot irregulariti irregularities. that dissolved and in the new form, they won't be able to hold hearings or call for a new election. house democrats are lawyering up, posting jobs on a long list of areas including criminal,

immigration, and bankruptcy law. they appear to be getting ready for congressional investigation of president trump after they take charge, but anthony brown said it's not just the judiciary that is hiring right now. >> there is a tremendous amount of oversight that has been neglected in the last two years under the republican-led congress. as democrats we have made a commitment to resume that function of government. you are pointing out that staffing up on the judiciary committee and there is equal staffing going on in other committees. >> let me bring back my panel who reported this story. jere jeremy, what did democrats tell you about this hiring push. >> we will see a huge range of issues fra president trump's finances to his businesses to the actions of members of his

cabinet and democratic committees gets to double their staff. as a result there is a ton of people in the process of hiring now. they are not going to start until the new year, until the congress is sworn in, but the committees have begun figuring out who it is and what they want. we found the judiciary committee is asking for a wide range of different lawyers from bankruptcy law to criminal law. other committees are looking for staffers that have experience in subpoenas and other sorts of topics that are going to oversight now. the pitfall that democrats have here potentially is that they could overreach. they have to be careful. nancy pelosi is trying to keep her committees on the same page so they are coordinated as a go forward. >> what are does it mean for 2019? are there being to be a bunch of

hearings and when would that start? >> that is definitely what we are going to see over a large portion of committees. they are in charge of impeachment. if the democrats decide they want to go that route, they will be in charge. everything from the armed services to the energy committee and the intelligence will be investigating different parts of the president's life and administration. what's key is this is not all going to happen on january 3rd. it will be a slow ramp up because the committees have to organize and hire the people and do the investigating that leads to the hearings. >> you heard anthony brown there use the phrase tremendous amount of oversight. that is something that this president hasn't seen so far. >> there is a lot of outside investigations and inspections going in, but he has not seen this for the first two years of his presidency. problems held in the house and senate. this is a shift into a new phase for his presidency. he is going to be facing a house

that is going to be doing investigations on all these topics and are going to be pushing their own legislative agenda as well. they have been able to make changes at the white house and the new chief of staff. they understand the hill. that helps them navigate and it will be a difficult time for him. >> it will be a bumpy ride, folks. after the deaths of two immigrant children, they said they are hearing horror stories. >> they were telling us about the conditions that were horrendous. dogs in pit shelters are kept in better conditions. it was bound to happen that folks were going to be sick. gentle means everything, so we improved everything. we used 50% fewer ingredients

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>> we are doing everything in our capacity to make sure when people do come, they are taken care of so we don't have these types of instance. in many cases they show up dehydrate and without food and they are seeing a doctor for the very first time in their lives, both adults and children. >> back to the death of that 8-year-old guatemalan migrant. we are learning from the new mexico office of the medical examiner who said they did lung and nasal swabs and said he found influenza b. why he was not tested for the flu, they said he was diagnosed with a common cold and had a fever and released with antibiotic prescriptions and his condition worsened. officially his cause of death

will not be released for up to three months. we learned it could take between 6 and 12 weeks before his cause of death is announced. the family in guatemala are begging to have their son's body released to have him laid to rest. >> thanks for that report from el paso. one of the interesting things, this idea that kirstin nielsen is on a pr campaign and we heard from this president that it's uncertain if they will continue. here's what he said about her over the last couple of weeks. >> she is doing a good job and it's not an easy job. they are running them well and i give a lot of credit to secretary nielsen. >> i like her and respect her very much. i would like her to be much tougher on the border. much tougher, period. >> do you think she is doing a

good enough job? >> she is trying. it's a tough job. >> you have the president saying she's trying. the relationship this president had where his secretary of homeland security has been a complicated one. >> we have seen him oscillate from praising to being lukewarm in more recent times. that am cans from the intense pressure that the base puts on president trump in this administration on this issue. this is a conservative base that sees no limit to how far they go on issues of illegal immigration. we had reporting from other outlets on how the secretary has been under pressure from the president and how the president wanted to do those extra judicial acts or those outside the scope of her job. we have to say that even though

these things are going on, even though the base is putting them under political pressure, there are moral questions that have to be asked when children are dieing and families are being separated. that brought intense scrutiny on the administration and blow back in the mid-terms. that will continue or ramp up as democrats take control of the house. >> and dianne feinstein wants to see more scrutiny. she seeks a hearing after the children's deaths. these heard breaking incidents are consistent with previous reports of widespread abuse of children in immigration custody and the judgment of medical or mental health organizations and border patrol facilities are not staffed or equipped to properly care for children. >> feinstein is on the senate judiciary. they have a fairly moderate view for a republican. it's definitely seeming like the house will pick it up.

they are talking about what about the kids at the border. their job is not just to look into the russia thing, but president trump, but also the policy of immigration and the border. especially the children who have been caught up in the policies that is a high priority. >> i will put this up on the screen and if you look at the border apprehensions under each of trump's dhs secretaries, you look at nielsen there, this is a problem that is getting worse. you want to weigh in quickly? >> this is not politically sustainable for republicans or the president no matter who is at fault. the dangerous journey of getting to the southern border or the united states government after these individuals are detained. people talk about the republican base and the pressure they may put on the president, but there is a larger republican coalition that does not like the president's approach to border politics. we saw that in the mid-term

elections. this is something both he and his party needs to figure out in a better way if they want to be in a better position in 2020. >> up next, the mueller probe gets the jeopardy treatment. jardiance asked- and now you know. jardiance is the first type 2 diabetes pill proven to both reduce the risk of cardiovascular death for adults who have type 2 diabetes and heart disease... ...and lower a1c, with diet and exercise. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal.

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ended yet, giuliani said because it's not just my opinion that matters. there are other lawyers involved and the president of the united states of course. my opinion sidon't trust them. i look at how they treated manafort, flynn, and corsi. if you are keeping track at home, giuliani told the hill newspaper that president trump will not be answering any more questions from these people. cnn's evan perez joins us now. you have been all over this. evan, thanks for joining us today. what do we know about what's ahead in 2019 with this? >> we expect the mueller part of this investigation is almost concluded. probably in the next couple of months, we will see that mueller will send his report. whatever the findings are, and then the next phase of this fight begins. the democrats want to get their hands on whatever report mueller

produces. the president and his legal team say not so fast. there is executive privilege and a lot of questions about how long the fight goes on before they, the democrats begin to do their own investigations on capitol hill. the preview of coming attractions is that this is entering the next phase, it will take us to 2020. >> there is a weird reference in the russian troll farm case to a nude selfie. could the manner in which he collected a nude selfie threaten the security of the united states, concord's lawyers ask in this case. say what now? >> it certainly made you read. probably a russian nude selfie and apparently in this terabytes of information that the special counsel said the lawyers for this company are allowed to see, but which they are not allowed to share. this is all a fight about how information that is shared with

the defense is allowed to be shared beyond them, including with russians back in russia. this is a fight over that, but hey, there is a nude selfie in there, we will try to figure out what that means. >> that's never good. i don't want to hear about that. mueller on jeopardy. i want to play that clip and he are out of here, probably. >> lawyers for 400. >> at least 17 indictments and five builguilty pleas were in o year after he became special counsel. >> who is mueller? >> he got that pretty quickly. >> now you know you are important. jeopardy or sesame street. >> part of the popular conversation. he got it right away. thanks for joining us. dana bash starts right now.

hey, everybody. i'm dana bash for brianna keilar. we start with the new year fast approaching and still no sign of a deal to end the government shut down. it has been almost a week and we have a new threat from the president. here's what he tweeted. we will be forced to close the southern border entirely if obstructionist democrats do not give us the money to finish the wall and also change the ridiculous immigration law that is our country is saddled with. we want to go to sarah westwood at the white house. first let's start with that threat. is that an actual threat or meaning like do you think there could be policy change or is this the president spouting off with no real policy change coming in the future? >> president trump