leaked to bring down russia's attorney general and the head of the security services at that time here, one vladimir putin. >> liz, what's the feeling in eastern europe if russia grows more aggressive under a trump administration? >> reporter: very anxious and not just in ukraine where russia has been waging war for almost two years ago. i have just come from estonia. it's one of the u.s.'s nato allies, and the government there is very worried that if a trump administration goes, as they would see it, soft on russia, it would embolden vladimir putin to invade their country, and they're also afraid that the u.s. may not even come to their defense in that instance, even though they are part of nato and a fully paid up member of nato, to boot. >> liz palmer in moscow, liz, thank you.

the "cbs overnight news" will be right back.

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now we have reaction on capitol hill. nancy cordes is there. >> i've always wondered, what did russia have on donald trump? >> reporter: the unsubstantiated documents captivated congress today, but they have been floating around for months. >> i did what any citizen should do. >> reporter: arizona republican john mccain was handed a copy late last year by a source he won't name. why do you think they came the you? >> i have no idea. >> reporter: do you find the information credible? > i don't know. that's why i gave it to the fbi. i don't know if it's credible or not, but the information i thought deserved to be delivered to the fbi, the appropriate agency of government. >> reporter: some republicans, like south carolina's lindsey graham, urged caution. >> every american should review these things with skepticism and suspicion.

you know, it's not up to him to prove what he didn't do. >> reporter: senate intelligence chair richard burr would not say if he had been briefed by the spy agencies about the validity of the claims. are you troubled by what you've heard so far? >> listen, i think we look at a report like this as opposition research from an unverified source. >> reporter: but democratic leader nancy pelosi and others in her party said trump's unorthodox stance on russia has led them to suspect some kind of connection long ago. >> any of that, whether it's financial, whether it's personal, whatever it is, whatever it is cannot have an impact on the national security of the united states of america. >> reporter: the nation's top intelligence officials will be here on capitol hill tomorrow to brief the entire senate on russia's attempt to sway the election. but they are sure to be pelted with questions, scott, about what russia may or may not have on the man who is set to be

>> nancy cordes, thanks, nance. elsewhere at the capitol, russia was the focus of a nine-hour senate confirmation hearing today for rex tillerson, the former ceo of exxon-mobil, now the nominee for secretary of state. here's chip reid. >> reporter: the toughest grilling of rex tillerson today came from a republican, senator marco rubio of florida. >> is vladimir putin a war criminal? >> i would not use that term. >> reporter: rubio, a leading critic of russia, graphically described russian bombing in syria. >> mr. putin has directed his military to conduct a devastating campaign that's targeted schools and markets and other civilian infrastructure that has resulted in the death of thousands of civilians. you are still not prepared to say that vladimir putin and his military have violated the rules of war and conducted war crimes in aleppo? >> those are very, very serious charges to make, and i would want to have much more information before reaching a conclusion.

>> i find it discouraging your inability to cite that, which i think is globally accepted. >> reporter: rubio has not yet decided whether to support tillerson. if he votes no, that could put the oil executive's confirmation at risk in the narrowly divided senate. rubio has previously criticized tillerson, who has known putin for years, for accepting an order of friendship from the russian president, but today tillerson said the two nations will probably never be friends. >> our value systems are starkly different. >> reporter: tillerson also encountered some rough sailing when republican chairman bob corker asked about lobbying against sanctions on russia after it invaded crimea. >> i never lobbied against the sanctions. to my knowledge exxonmobil never lobbied against the sanctions. >> reporter: but corker reminded him of this. >> i think you called me during this time. >> reporter: and democrat bob menendez said he had hard evidence tillerson was mistaken. >> i have four different lobbying reports totaling millions of dollars as reqd

by the lobbying disclosure act that lists exxonmobil's lobbying activities on four specific pieces of legislation authorizing sanctions. >> reporter: senator menendez also asked tillerson if he and president-elect trump have even talked about russia yet. scott, tillerson said no, to which menendez responded, "that's pretty amazing." >> chip reid for us tonight. chip, thank you. today is the confirmation of senator jeff sessions of alabama to become attorney general, there was rare opposition from a fellow senator, democrat cory booker of new jersey. >> reporter: senator sessions has not demonstrated a commitment to a central requisite of the job, to aggressively pursue the congressional mandate of civil rights, equal rights and justice for all of our citizens. in fact, at numerous times in his career, he's demonstrated a hostility toward these convictions.

he has worked to frustrate attempts to advance these ideals. >> yesterday senator sessions said that he would enforce all civil rights laws if confirmed. mr. trump made more news today, saying he will make a supreme court nomination within two weeks of taking office. he said he plans to both repeal and replace obamacare at the same time, and he'll start that wall at the border before he gets mexico to pay for it. he also revealed his plan for another wall between the white house and his financial empire. here's julianna goldman. >> as the president, i could run the trump organization, great, great company, and i could run the country. i'd do a very good job. >> reporter: the president-elect has decided he will not sell his assets or place them in a blind trust, as government ethics experts had urged. instead mr. trump will move his assets into a trust controlled by his two oldest sons, who will also manage the trump

they will not pursue new international deals and will hire an ethics adviser to oversee new deals in the u.s. they will also not consult with mr. trump. >> i hope at the end of eight years i'll come back and say, oh, you did a good job, otherwise if they do a bad job, i'll say, you're fired. >> reporter: today walter shaub, the head of the government ethics office, called the plan wholly inadequate. >> the plan does not meet the standards that the best of his nominees are meeting and that every president in the past four decades have met. >> reporter: the arrangement means mr. trump could have dealings with foreign countries where he also has a financial stake. cbs news has counted at least ten countries, including turkey and united arab emirates, where the president-elect has business interests. >> he needs to sell the business, free himself of conflicts of interests. >> reporter: richard painter was the ethics lawer for former president george w. bush. he says mr. trump coulvi

receiving payments. a state run chinese bank is a tenant in trump tower in new york, for example. >> we need a clean sweep of foreign government payments from the business empire. there is no evidence that that's going to happen with respect to any of it other than the hotel. >> reporter: the president-elect will donate to the u.s. treasury any profits made from foreign governments using his hotel, and that includes his new one here in d.c. that leases property from the government. scott nothing today addresses the fact that as president mr. trump will be both landlord and tenant. >> julianna goldman, thanks. coming up next, we'll get john dickerson's take on the president-elect versus the media. and later, dozens are rescued as severe weather continues to storm the west. for improved mobility and flexibility, and 20% better comfort from one tiny, mighty pill... get move free ultra, and enjoy living well.

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and the hooligan who lives down the lane was caught selling the stolen goods online. visit geico.com and see how easy it is to switch and save on renters insurance. it was hard to tell in the president-elect's news conference today whether he was more disgusted with his intelligence community or with the media. john dickerson is here, our cbs news political director and anchor of "face the nation." john, mr. trump is rewriting the relationship with the press. >> reporter: he is. all presidents try to do this. they try to control the message by controlling the press. donald trump is trying to do it through intimidation, to soften up the stories about him, but he's also seeking to delegitimize the press. that isn't to say -- he's not complaining about a specific story. he's saying that there is a battle between himself t

press and that's an attempt to basically take the value away from what the press does. >> let's have a look at something else he said in the news conference today. >> don't be rude. >> mr. president-elect, can you give us a question. >> don't be rude. don't be rude. no i'm not going to give you a question. >> can you state -- >> you are fake news. go ahead. you know, i've been hearing more and more about fake news. they talk about people that go and say all sorts of things, but i will tell you, some of the media outlets that i deal with are fake news, more so than anybody. i could name them, but i won't bother. >> so does donald trump need the press the way other presidents have? >> you see, he's trying to define all news as fake news. he can also use twitter to get his message out. usually presidents in their attempts to control the press fail because they ultimately need the press to get their message out. he has twitter. he also has a following that's more apt the believe that the press is out to get donald trump. but his favorability ratings are about 43%. to get the rest

of the country, he needs the validation of the press. to get his message across from something that's not just his own mouth, and that's where usually it breaks down for presidents who try and go after the press. >> to speak to a broader audience. john dickerson, thanks so much. we'll see you sunday on "face the nation." still coming up, the largest auto recall in american history expands.

new degree ultraclearnt saving black + white.othes. no yellow stains on white clothes. no white marks on black clothes. new degree ultraclear black + white. it won't let you down. honda is recalling another 772,000 vehicles because of defective air bags made by t

japanese company takata. the recall now involves as many as 69 million air bags in american cars and trucks. the inflators can explode, ejecting metal shrapnel and 11 people have died. the recall list is posted at cbsnews.com. today volkswagen pleaded guilty to criminal conspiracy and will pay the u.s. government more than $4 billion. nearly 600,000 diesel vehicles were fraudulently programmed to pass emissions tests that they should have failed. six vw executives were indicted today. the national cancer institute has begun a new push to have children vaccinated against hpv. the vaccine can prevent cervical and other cancers, but only about 42% of girls and 28% of boys have been vaccinated. federal guidelines recommend it for chil a

up next, another round of floods and blizzards slams the west.

a state usually associated with sunshine and drought is now being hit with waves of blizzards and floods. john blackstone is in california for us, john? >> reporter: scott, there have been plenty of warnings in california over the last few days, but this flood came without warning. here in the town of hollister, the fast-rising water took residents by surprise. this farming town south of san jose, california, quickly turned into one giant swamp after a nearby creek overflowed. emergency crews responded to calls overnight from dozens of panicked residents trapped inside their homes. by daybreak ranchers were still leading their animals to dry land. kevin o'neill is the county's emergency services manager. >> the scene here last night was challenging at times. it was dark, a lot of these houses didfe

>> reporter: in sonoma county, the russian river rose once again, reaching nearly 38 feet this afternoon, about six feet above flood level. firefighters were out in swift boats saving homeowners and stranded drivers from the unrelenting waters. melba martinelli had to leave her home. >> it's our home. it's the only one we've got. so we're losing our home it looks like right now. >> reporter: in the sierra nevadas, storms have now dumped more than ten feet of snow, toppling trees, downing power lines, and collapsing a huge chunk of this mountain road. but for some, this extreme weather has provided opportunities for extreme adventure. even storm clouds can have a silver lining. john blackstone, cbs news, hollister, california. and that's the "overnight news" for this thursday. for some of you, the news continues. for others, check back with us a little bit later for the morning news and be sure not to miss "cbs this morning." from the broadcast cr

this is the "cbs overnight news." >> welcome to the "overnight news." i'm tony dokoupil. president-elect donald trump stepped up to the podium for his first formal news conference in months. it was billed as a chance for mr. trump to lay out his plans to separate himself from his global business empire, but overshadowing that were reports that russia has obtained compromising personal and financial information on mr. trump. major garrett has our story. >> it's all fake news. it's phony stuff. it didn't happen. and it was gotten by opponents of ours. it was a group of opponents that got together, sick people, and they put that crap together. >> reporter: with that president-elect donald trump emphatically denied the unsubstantiated allegations, including one about his sexual

>> does anyone really believe that story? i'm also very much a germaphobe, by the way, believe me. >> reporter: that raw information was included as an appendix to a classified report detailing russian efforts to tamper with the u.s. election undermine democratic nominee hillary clinton and help mr. trump. today for the first time the president-elect agreed with that assessment, that russia was responsible for several election-related cyber attacks. >> as far as hacking, i think it was russia, but i think we also get hacked by other countries and other people. >> reporter: but mr. trump also cited information revealed by the cyber intrusions. >> hacking is bad, and it shouldn't be done, but look at the things that were hacked. look at what was learned from that hacking, that hillary clinton got the questions to the debate and didn't report it? that's a horrible thing. >> reporter: this morning in response to publication of the unve

trump tweeted, "intelligence agencies should never have allowed this fake news to leak into the public. are we living in nazi germany?" what were you driving at there? >> i think it was disgraceful, disgraceful that the intelligence agencies allowed any information that turned out to be so false and fake out, and that's something that nazi germany would have done and did do. >> reporter: the president-elect also lashed out at a reporter from cnn, the first news organization to report that the russian hacking assessment included the unverified claims. >> your organization is terrible. >> you're attacking our news organization. can you give us a chance to ask a question, sir. >> quiet. quiet. >> mr. president-elect -- >> she's asking a question. don't be rude. >> reporter: mr. trump declined to say whether he would keep sanctions imposed on russia by president obama. he also said he would work with russian president vladimir putin. >> if putin likes donald trump, i consider that an asset, not a liability, because we have a

russia. >> reporter: u.s. investigators are frying to verify what, if any aspects of the allegations related to mr. trump's conduct can be verified. russia was also a hot topic at the confirmation hearing for rex tillerson. chip reid has that story. >> reporter: the toughest grilling of rex tillerson today came from a republican, senator marco rubio of florida. >> is vladimir putin a war criminal? >> i would not use that term. >> reporter: rubio, a leading critic of russia, graphically described russian bombing in syria. >> mr. putin has directed his military to conduct a devastating campaign that's targeted schools and markets and other civilian infrastructure that's resulted in the death of thousands of civilians. you are still not prepared to say that vladimir putin and his military have violated the rules of war and conducted war crimes in aleppo? >> those are very, very serious charges to make, and i would wao

information before reaching a conclusion. >> i find it discouraging your inability to cite that, which i think is globally accepted. >> reporter: rubio has not yet decided whether to support tillerson. if he votes no, that could put the oil executive's confirmation at risk in the narrowly divided senate. rubio has previously criticized tillerson, who has known putin for years, for accepting an order of friendship from the russian president, but today tillerson said the two nations will probably never be friends. >> our value systems are starkly different. >> reporter: tillerson also encountered some rough sailing when republican chairman bob corker asked about lobbying against sanctions on russia after it invaded crimea. >> i never lobbied against the sanctions. to my knowledge exxonmobil never lobbied against the sanctions. >> reporter: but corker reminded him of this. >> i think you called me during this time. >> reporter: and democrat bob menendez said he had hard evidence tillerson was mistaken.

lobbying reports totaling millions of dollars as required by the lobbying disclosure act that lists exxonmobil's lobbying activities on four specific pieces of legislation authorizing sanctions. >> reporter: senator menendez also asked tillerson if he and president-elect trump have even talked about russia yet. scott, tillerson said no, to which menendez responded, "that's pretty amazing." president obama is back at the white house after delivering his farewell address in his hometown of chicago. mr. obama warned about threats to our democracy and urged americans to have faith in our country. dean reynolds was among the 18,000 in the hall when the president spoke. >> reporter: in her farewell address, the president urged americans to stay involved in the democratic process, and he emphasized the importance of a smooth and peaceful transition to his successor.

>> i can't do that. >> reporter: president obama said it's every citizen's responsibility to be guardians of america's democracy. >> democracy can buckle when it gives into fear. that's why i reject discrimination against muslim-americans who are just as patriotic as we are. >> reporter: his remarks on income inequality seem to reflect on the themes of the last election. >> if every economic issue is framed as a struggle between a hard-working white middle class and undeserving minority, then workers of all shades are going to be left fighting for scraps while the wealthy withdraw further into their private enclaves. >> reporter: the president offered a challenge to republicans trying to dismantle the affordable care act. >> if

plan that is demonstrably better, i will publicly support it. [ applause ] >> reporter: after two terms in the spotlight, mr. obama issued a tearful tribute to his daughters and the first lady. >> michelle levon robinson, girl of the south side, you made the white house a place that belongs to everybody. malia and sasha, of all that i've done in my life, i'm most proud to be your dad. [ applause ] >> reporter: last night, the nation's 44th president closed with a promise. >> my fellow americans, it has been the honor of my life to serve you. i won't stop. i'm asking you to believe, not in my ability to bring about change but in yours. yes, we can. yes,

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president-elect donald trump has vowed to revamp how the federal government does business. one form of that business that may not change is the u.s. policy towards hostages. washington will not pay ransom to gain the release of a u.s. citizen. it doesn't even allow the family of the hostage to pay. and that can leave the hostage in an impossible spot. leslie stall has that story for "60 minutes." >> i am steven joel sotloff. i'm sure you know exactly who i am by now and why i'm appearing before you. >> reporter: steven joel sotloff was beheaded by isis. his execution on september 2, 2014, was seen around the world on a video. did you ever watch it? >> i have viewed

>> i had to see that, because i needed to be sure that that was him. >> reporter: steven was born and raised in miami, attended clenl in israel, and became a freelance journalist, reporting from war zones where information was scarce. like yemen, benghazi, libya, and syria, where he went in the summer of 2013. just before he crossed into aleppo, he called his dad. >> he contacted me and told me not to worry. but if i don't hear from him within four days, that i should get in touch with one of his colleagues. >> woe, that's ominous. >> reporter: he didn't hear from his son not for four days, but four excruciating months. then finally they got a ransom letter with demands for the government to free all the muslims in u.s. custody. or -- >> and then there's a last option.

steven's release. >> which is something like -- >> $137 million. >> reporter: what was your reaction? >> reaction was, how the hell are we going to get this money together? >> reporter: they thought the u.s. government would help them, but they were bewildered, and then infuriated when they say they met a stone wall. the u.s. policy forbidding the paying of ransom. >> it's some of the hardest work that i've done. >> reporter: lisa monaco, assistant to president obama for counterterrorism, oversaw the hostage crisis. >> these are horrible choices. on the one hand, if you don't pay a ransom, you are putting an innocent life at risk. on the other hand, if you do, you're fuelling the very activity that's put them at risk in the first place. >> reporter: did you feel ever that the policy might be wrong? >> the policy that's been a decades old policy of not paying ransom i think is the right policy.

question that? >> we didn't. we believed that was important to maintain. >> reporter: with the exception of the uk, most european countries do pay ransom without publicly add mitting it. steven was held with 22 other hostages, including the three americans james foley, peter cassic, and kayla mueller, who were all killed. once the european governments paid ransom, isis released their citizen. one of whom smuggled out this letter from steven. >> he was speaking out he can't stand seeing all the captives leave from all different countries, how could the united states just stand by and not do anything? >> reporter: as the european hostages came out and spoke of mock executions and water boardings, they decided to try to raise some of the money themselves. but then they and the other u.s. families attended a m

national security council. >> all of us were saying why can't we try to save our kids? and they said because it's against the law. we do not negotiate with terrorists. >> reporter: did they say you would be prosecuted? >> they said, you could be prosecuted and also your donors would be prosecuted. >> reporter: so if i gave you money, i would be prosecuted? >> correct. >> reporter: did anybody say, are you kidding me? >> yes, we did. >> it was a little bit contentious. >> we could have verbally fought back. >> reporter: they were threatened they would be prosecuted. is that true? >> what's true is that some families felt threatened, and that was unacceptable, and that should never have happened. >> reporter: are you suggesting they may not have been threatened? >> what i'm suggesting is i'm not present when any threats were made, but what matters, leslie, is these families felt

through the most horrific time they with encounter. >> reporter: was that the policy, was that true? could they have actually been prosecuted? could someone who contributed to pay ransom also be prosecuted? >> so what's true is that the justice department has never prosecuted a family or friends of a family that has paid a ransom. >> reporter: but was it the policy? >> well, what the policy is, the united states government will not pay ransoms or make concessions to hostage takers. >> reporter: that policy is based in part on presumption that paying ransom invites more hostage taking. but that is refuted by a new study that examined the case of every known western hostage taken since 9/11. it was co-authored by peter bergen, a counterterrorism expert for the nonpartisan new america foundation. >> they don't know necessarily you're american when they take you. someou

ransom, the french, germans, the spanish. but they don'ted admit they do. americans are huge outliers here. you're twice as likely to have a negative outcome. >> reporter: you mean murdered? >> murdered, die in captivity or remain in captivitcaptivity. >> reporter: four americans and two brits died. i keep playing in my own head this horrible situation, where the american hostages watched the other ones be set free. and i wonder if it wouldn't have been better if our government did what the european governments did, which is pay ransom but then deny it in order to save their citizens. why wouldn't we have done that? >> we would still be

whether it's hostage taking or whether it's terrorist plots, to kill americans here in the homeland or elsewhere is not activity that the united states government should be in the business of funding. >> reporter: what do you say to critics of the policy of not paying ransom, that the beheadings of the americans ended up having more value to isis than any money would have been, that's really what put them on the international map, these beheading videos were a gold mine for isis. do you see it that way? >> i don't. and i think it's giving prosecutal, murderous thugs too much credit. >> you can see thel fulep rort on our website, cbsnews.com. the "overnight news" will be right back.

rise above joint discomfort with move free ultra's triple action joint support for improved mobility and flexibility, and 20% better comfort from one tiny, mighty pill... get move free ultra, and enjoy living well. people in scotland take their whiskey very seriously. and if you want to call your drink scotch, there are a list of rules. but one american in london is breaking those rules and our jonathan vigliotti got that story. >> reporter: here in the uk, that's perfectly acceptable to order a scotch whiskey. scotch is a billion dollar a year industry here in the uk. many of the brands are centuries

you -- are mixing up this ancient less key. ♪ whiskey is the life of man >> reporter: it's amber tones and smoky notes have desuessed for centuries, and given birth to one of the uk's most lucrative industries. in the rolling hills of scotland, making scotch whiskey is a work of art. the grains are mashed, fermented, then distilled. and finally aged in wooden casts. the scotch inside is then bottled and sold. it's a 500-year-old spirit protected by law. and drinking it can pack a lot of rules. just watch master distiller richard patterson's tutorial. >> this is the way you hold it, not this way. definitely not this way. but if i ever see you

nosing it like this, i'll kill you. >> reporter: but in the small london left, whiskey blender john glazer is dropping the pretension and adding a new range of flavors. >> a lot of people think scotch whiskey is high handed, that there are rules and you have to drink it a certain way. so it is intimidating. we try to break all that down. >> reporter: his blends are to whiskey what craft beer is to lager. >> it's more in tune with the taste of the day, we think. >> reporter: whisper whiskey, it's being dubbed. mellower and lighter for the millennial palate. the production process borrows from tradition. like friender e blenders of the mixes them. but he goes one step further,

maturing the blend again. when you're tasting, when you're assisting, it's a technique that's won international praise. >> we've had run-ins with authorities of the industry because we hike to do things differently. >> reporter: his innovative casts led to one of his whiskeys being banned. >> it has to be matured in casts. so we're not trying to -- we're trying to encourage it within the guidelines. >> reporter: innovation is needed. in 2015 for the first time ever, not a single scotch appeared in the whiskey bible's top three lift. a japanese whiskey ranked number one. this year, scotch is on the list, but

caramel-vanilla blend. these whisper whiskeys are even welcomed in cocktails. >> if you're just doing things the way you always have, you're going to fall behind. >> reporter: john glazer hopes his customized blends are part of the occasion. >> we can blend up whatever you want, but why don't you do it? let's turn the responsibility over to you. >> reporter: let's do a "cbs this morning" scotch whiskey. for charlie, it's going to be smoery. for smoera, floral. and for gail, spicy. >> how smoky do you want it to be? >> a balance of all three. that's charlie. >> next, we'll do the spicy one. >> emphasis on spicy. >> so floral for norah.

moment of truth. >> cheers to "cbs this morning."

for years, we've been told to exercise an average of one hour a day. but most people find that impossible. and simply work out if and when they can. that can mean weekends. a growing number of americans are becoming weekend warriors. is that healthy? dr. jon lapook has a look. >> open those hips on

spends two hours a week at a local gym working up sweat. theo much. >> it's not easy. it's difficult, because you know, the only thing after a long day you want to sit down and rest. >> reporter: so she hired trainer steven ferguson to get her off the catch. >> 50 jump rope? >> 50? i feel better with my body. my confidence is better. >> reporter: she's a so-called weekend warrior, cramming all her exercise into one or two monster workouts. a study in internal medicine compared exercise in one or two sessions compared to regular exercise throughout the week and found they had a lower risk of death than inactive people. both groups got at least the recommended weekly 2 1/2 hours of mer

minutes of vigorous activity. >> if you're jogging, walking, where you can still have a conversation, that's moderate exercise. >> reporter: dr. jordan metzel in new york city. >> when you do nothing and then put 60 or 90 minutes of a workout together as the only thing, you're at more risk for overuse injuries. >> reporter: so you shouldn't jump into being a warrior. >> we prefer something that'ses into what they do. exercise is the most safe and effective drug in the human condition. >> reporter: this is good news for people who can't find time during the week. but there's still reason to exercise regularly, which helps a number of medical conditions. dr. jon lapook, cbs, new york. >> that's the "overnight news" for this thursday. do not miss "cbs this

from the broadcast center here in new york city, i'm tony dokoupil. he comes out swinging. >> i think it was disgraceful. >> at his first post-election news conference, donald trump lashes out at u.s. intelligence. >> that's something that nazi germany would have done and did do. >> reporters -- >> i'm not going to give you a question. you are fake news. >> and the candidate he defeated. >> do you honestly believe that hillary would be tougher on putin than me? also tonight, the president-elect promises to build a wall between the white house and his financial empire, but critics say it has cracks. defective air bags, hundreds of thousands are added to the recall list. and flooding of biblical proportion, but not an ark in sight.

♪ this is the "cbs overnight news." an unprecedented rift opened up today between america's next commander-in-chief and u.s. intelligence agencies. donald trump likened them to nazis in an early morning tweet and later at his first post-election news conference. mr. trump accuses them of leaking potentially damaging, unproven and he says false allegations about him. it all started back during the campaign when a former british intelligence officer, acting as a private investigator, asked his russian sources for dirt on mr. trump. he collected 35 pages of it, including tales of financial and sexual misbehavior, but no evidence that any of it was true. u.s. intelligence then condensed the private eye's notes and gave them to the president, the president-elect and the leaders of congress.

major garrett begins our coverage. >> it's all fake news. it's phony stuff. it didn't happen. and it was gotten by opponents of ours. it was a group of opponents that got together, sick people, and they put that crap together. >> reporter: with that president-elect donald trump emphatically denied the unsubstantiated allegations, including one about his sexual behavior. >> does anyone really believe that story? i'm also very much a germophobe, by the way, believe me. >> reporter: that raw information was included as an appendix to a classified report detailing russian efforts to tamper with the u.s. election undermine democratic nominee hillary clinton and help mr. trump. today for the first time the president-elect agreed with that assessment, that russia was responsible for several election-related cyber attacks. >> as far as hacking, i think it was russia, but i think we also get hacked by other countries and other people.

>> reporter: but mr. trump also cited information revealed by the cyber intrusions. >> hacking is bad, and it shouldn't be done, but look at the things that were hacked. look at what was learned from that hacking, that hillary clinton got the questions to the debate and didn't report it? that's a horrible thing. >> reporter: this morning in response to publication of the unverified information, mr. trump tweeted, "intelligence agencies should never have allowed this fake news to leak into the public. are we living in nazi germany?" what were you driving at there? >> i think it was disgraceful, disgraceful that the intelligence agencies allowed any information that turned out to be so false and fake out, and that's something that nazi germany would have done and did do. >> reporter: the president-elect also lashed out at a reporter from cnn, the first news organization to report that the russian hacking assessment included the unverified claims. >> your organization is

>> you're attacking our news organization. can you give us a chance to ask a question, sir. >> quiet. quiet. >> mr. president-elect -- >> she's asking a question. don't be rude. >> reporter: mr. trump declined to say whether he would keep sanctions imposed on russia by president obama. he also said he would work with russian president vladimir putin. >> if putin likes donald trump, i consider that an asset, not a liability, because we have a horrible relationship with russia. >> reporter: relevant u.s. intelligence agencies had no comment on this dispute with mr. trump or its implications. scott, u.s. investigators are trying to verify what if any aspects of the allegations related to mr. trump's conduct can be verified. >> major garrett at trump tower, thanks. now, with insight into the rift between mr. trump and his intelligence chief, we turn to leon panetta of the panetta institute. he's a former secretary of defense who was director of the cia when osama bin laden was killed. mr. secretary, what's at stake

the intelligence community? >> i think what's at stake is the security of the united states of america. the first duty of a president is to protect our country, and he cannot protect our country without the ability to get good intelligence on what our adversaries are up to. that demands a relationship of trust, and unfortunately, i think, i see a relationship in which that trust doesn't exist right now. >> what's the harm in airing this out in public? >> i think what happens is it damages the credibility of not only the intelligence that's being provided, but more importantly it undermines the morale of those who are involved in our intelligence services. these are people who are committed to getting the best intelligence possible for the president of the united states. that involves risks. they have to put their lives on the li

they're going to hesitate to do that if they feel the president of the united states does not trust the work that they're doing. >> leon panetta of the panetta institute, former director of the cia and former secretary of defense, thank you. >> thank you, scott. now elizabeth palmer is in moscow tonight, and we'll turn to her. liz, what's the view from there? >> reporter: well, scott, no surprise the russians have flatly denied they have any material they could use to blackmail donald trump. in fact, the kremlin spokesman dmitry peskov today called it "pulp fiction" and said it was simply being used to damage relations between the u.s. and russia. now, that being said, there is a long history in this country of the security services collecting information to embarrass or even ruin public figures. there's even a special word for it. it's called kompramot, and in one particularly scandalous case back in 1999, a sex tape

leaked to bring down russia's attorney general and the head of the security services at that time here, one vladimir putin. >> liz, what's the feeling in eastern europe if russia grows more aggressive under a trump administration? >> reporter: very anxious and not just in ukraine where russia has been waging war for almost two years now. i have just come from estonia. it's one of the u.s.'s nato allies, and the government there is very worried that if a trump administration goes, as they would see it, soft on russia, it would embolden vladimir putin to invade their country, and they're also afraid that the u.s. may not even come to their defense in that instance, even though they are part of nato and a fully paid up member of nato, to boot. >> liz palmer in moscow, liz, thank you. the "cbs overnight news" will be right back.

now we have reaction on capitol hill. nancy cordes is there. >> i've always wondered, what did russia have on donald trump? >> reporter: the unsubstantiated documents captivated congress today, but they have been floating around for months. >> i did what any citizen should do. >> reporter: arizona republican john mccain was handed a copy late last year by a source he won't name. why do you think they came to you? >> i have no idea. >> reporter: do you find the information credible? >> i don't know. that's why i gave it to the fbi. i don't know if it's credible or not, but the information i thought deserved to be delivered to the fbi, the appropriate agency of government. >> reporter: some republicans, like south carolina's lindsey graham, urged caution. >> every american should review these things with skepticism and suspicion.

you know, it's not up to him to prove what he didn't do. >> reporter: senate intelligence chair richard burr would not say if he had been briefed by the spy agencies about the validity of the claims. are you troubled by what you've heard so far? >> listen, i think we look at a report like this as opposition research from an unverified source. >> reporter: but democratic leader nancy pelosi and others in her party said trump's unorthodox stance on russia has led them to suspect some kind of connection long ago. >> any of that, whether it's financial, whether it's personal, whatever it is, whatever it is cannot have an impact on the national security of the united states of america. >> reporter: the nation's top intelligence officials will be here on capitol hill tomorrow to brief the entire senate on russia's attempt to sway the election. but they are sure to be pelted with questions, scott, about what russia may or may not have on the man who is set to be sworn in

>> nancy cordes, thanks, nance. elsewhere at the capitol, russia was the focus of a nine-hour senate confirmation hearing today for rex tillerson, the former ceo of exxonmobil, now the nominee for secretary of state. here's chip reid. >> reporter: the toughest grilling of rex tillerson today came from a republican, senator marco rubio of florida. >> is vladimir putin a war criminal? >> i would not use that term. >> reporter: rubio, a leading critic of russia, graphically described russian bombing in syria. >> mr. putin has directed his military to conduct a devastating campaign that's targeted schools and markets and other civilian infrastructure that has resulted in the death of thousands of civilians. you are still not prepared to say that vladimir putin and his military have violated the rules of war and conducted war crimes in aleppo? >> those are very, very serious charges to make, and i would want to have much more information before reaching a

>> i find it discouraging your inability to cite that, which i think is globally accepted. >> reporter: rubio has not yet decided whether to support tillerson. if he votes no, that could put the oil executive's confirmation at risk in the narrowly divided senate. rubio has previously criticized tillerson, who has known putin for years, for accepting an order of friendship from the russian president, but today tillerson said the two nations will probably never be friends. >> our value systems are starkly different. >> reporter: tillerson also encountered some rough sailing when republican chairman bob corker asked about lobbying against sanctions on russia after it invaded crimea. >> i never lobbied against the sanctions. to my knowledge exxonmobil never lobbied against the sanctions. >> reporter: but corker reminded him of this. >> i think you called me during this time. >> reporter: and democrat bob menendez said he had hard

evidence tillerson was mistaken. >> i have four different lobbying reports totaling millions of dollars as required by the lobbying disclosure act that lists exxonmobil's lobbying activities on four specific pieces of legislation authorizing sanctions. >> reporter: senator menendez also asked tillerson if he and president-elect trump have even talked about russia yet. scott, tillerson said no, to which menendez responded, "that's pretty amazing." >> chip reid for us tonight. chip, thank you. today is the confirmation of senator jeff sessions of alabama to become attorney general, there was rare opposition from a fellow senator, democrat cory booker of new jersey. >> reporter: senator sessions has not demonstrated a commitment to a central requisite of the job, to aggressively pursue the congressional mandate of civil rights, equal rights and justice for all of our citizens. in fact, at numerous times in his career, he's demonstrated a hostility toward these convictions.

he has worked to frustrate attempts to advance these ideals. >> yesterday senatr sessions said that he would enforce all civil rights laws if confirmed. mr. trump made more news today, saying he will make a supreme court nomination within two weeks of taking office. he said he plans to both repeal and replace obamacare at the same time, and he'll start that wall at the border before he gets mexico to pay for it. he also revealed his plan for another wall between the white house and his financial empire. here's julianna goldman. >> as the president, i could run the trump organization, great, great company, and i could ru the country. i'd do a very good job. >> reporter: the president-elect has decided he will not sell his assets or place them in a blind trust, as government ethics experts had urged. instead mr. trump will move his assets into a trust controlled by his two oldest sons, who will alsoan

organization. they will not pursue new international deals and will hire an ethics adviser to oversee new deals in the u.s. they will also not consult with mr. trump. >> i hope at the end of eight years i'll come back and say, oh, you did a good job, otherwise if they do a bad job, i'll say, you're fired. >> reporter: today walter shaub, the head of the government ethics office, called the plan wholly inadequate. >> the plan does not meet the standards that the best of his nominees are meeting and that every president in the past four decades have met. >> reporter: the arrangement means mr. trump could have dealings with foreign countries where he also has a financial stake. cbs news has counted at least ten countries, including turkey and united arab emirates, where the president-elect has business interests. >> he needs to sell the business, free himself of conflicts of interests. >> reporter: richard painter was the ethics lawer for former president george w. bush. he says mr. trump could violate

government official from receiving payments from a foreign government. a state run chinese bank is a tenant in trump tower in new york, for example. >> we need a clean sweep of foreign government payments from the business empire. there is no evidence that that's going to happen with respect to any of it other than the hotels. >> reporter: the president-elect will donate to the u.s. treasury any profits made from foreign governments using his hotels, and that includes his new one here in d.c. that leases property from the government. scott nothing today addresses the fact that as president mr. trump will be both landlord and tenant. >> julianna goldman, thanks. coming up next, we'll get john dickerson's take on the president-elect versus the media. and later, dozens are rescued as severe weather continues to storm the west. what's the status? there's a meteor hurtling towards earth. how long until impact? less than a minute. what do you want to do, sir? listen carefully...

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it was hard to tell in the president-elect's news conference today whether he was more disgusted with his intelligence community or with the media. john dickerson is here, our cbs news political director and anchor of "face the nation." john, mr. trump is rewriting the relationship with the press. >> reporter: he is. all presidents try to do this. they try to control the message by controlling the press. donald trump is trying to do it through intimidation, to soften up the stories about him, but he's also seeking to delegitimize the press. that isn't to say -- he's not complaining about a specific

he's saying that there is a battle between himself and the press and that's an attempt to basically take the value away from what the press does. >> let's have a look at something else he said in the news conference today. >> don't be rude. >> mr. president-elect, can you give us a question. >> don't be rude. don't be rude. no i'm not going to give you a question. >> can you state -- >> you are fake news. go ahead. you know, i've been hearing more and more about fake news. they talk about people that go and say all sorts of things, but i will tell you, some of the media outlets that i deal with are fake news, more so than anybody. i could name them, but i won't bother. >> so does donald trump need the press the way other presidents have? >> you see, he's trying to define all news as fake news. he can also use twitter to get his message out. usually presidents in their attempts to control the press fail because they ultimately need the press to get their message out. he has twitter. he also has a following that's more apt to believe that the press is out to get donald trump. but his favorability ratings are about 43%. to get the rest of the

country -- to speak to the rest of the country, he needs the validation of the press, to get his message across from something that's not just his own mouth, and that's where usually it breaks down for presidents who try and go after the press. >> to speak to a broader audience. john dickerson, thanks so much. we'll see you sunday on "face the nation." still coming up, the largest auto recall in american history expands. with move free ultra's triple action joint support for improved mobility and flexibility, and 20% better comfort from one tiny, mighty pill... get move free ultra, and enjoy living well. it's so delicious. i can't believe it has 40% fewer calories than butter. i can't believe it's made with real, simple ingredients. i can't believe we're on a whale. i can't believe my role isn't bigger.

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the recall now involves as many as 69 million air bags in american cars and trucks. the inflators can explode, ejecting metal shrapnel and 11 people have died. the recall list is posted at cbsnews.com. today volkswagen pleaded guilty to criminal conspiracy and will pay the u.s. government more than $4 billion. nearly 600,000 diesel vehicles were fraudulently programmed to pass emissions tests that they should have failed. six vw executives were indicted today. the national cancer institute has begun a new push to have children vaccinated against hpv. the vaccine can prevent cervical and other cancers, but only about 42% of girls and 28% of boys have been vaccinated. federal guidelines recommend it for childrs

up next, another round of floods and blizzards slams the west.

a state usually associated with sunshine and drought is now being hit with waves of blizzards and floods. john blackstone is in california for us, john? >> reporter: scott, there have been plenty of warnings in california over the last few days, but this flood came without warning. here in the town of hollister, the fast-rising water took residents by surprise. this farming town south of san jose, california, quickly turned into one giant swamp after a nearby creek overflowed. emergency crews responded to calls overnight from dozens of panicked residents trapped inside their homes. by daybreak ranchers were still leading their animals to dry land. kevin o'neill is the county's emergency services manager. >> the scene here last night was challenging at times

it was dark, a lot of these houses did suffer some damage. >> reporter: in sonoma county, the russian river rose once again, reaching nearly 38 feet this afternoon, about six feet above flood level. firefighters were out in swift boats saving homeowners and stranded drivers from the unrelenting waters. melba martinelli had to leave her home. >> it's our home. it's the only one we've got. so we're losing our home it looks like right now. >> reporter: in the sierra nevadas, storms have now dumped more than ten feet of snow, toppling trees, downing power lines, and collapsing a huge chunk of this mountain road. but for some, this extreme weather has provided opportunities for extreme adventure. even storm clouds can have a silver lining. john blackstone, cbs news, hollister, california. and that's the "overnight news" for this thursday. for some of you, the news continues. for others, check back with us a little bit later for the morning news and be sure not to miss "cbs this morning." from the broadcast center in new york city, i'm scott pelley.

this is the "cbs overnight news." >> welcome to the "overnight news." i'm tony dokoupil. president-elect donald trump stepped up to the podium for his first formal news conference in months. it was billed as a chance for mr. trump to lay out his plans to separate himself from his global business empire, but overshadowing that were reports that russia has obtained compromising personal and financial information on mr. trump. major garrett has our story. >> it's all fake news. it's phony stuff. it didn't happen. and it was gotten by opponents of ours. it was a group of opponents that got together, sick people, and they put that crap together. >> reporter: with that president-elect donald trump emphatically denied the unsubstantiated allegations, including one about his sexual behavior.

>> does anyone really believe that story? i'm also very much a germaphobe, by the way, believe me. >> reporter: that raw information was included as an appendix to a classified report detailing russian efforts to tamper with the u.s. election undermine democratic nominee hillary clinton and help mr. trump. today for the first time the president-elect agreed with that assessment, that russia was responsible for several election-related cyber attacks. >> as far as hacking, i think it was russia, but i think we also get hacked by other countries and other people. >> reporter: but mr. trump also cited information revealed by the cyber intrusions. >> hacking is bad, and it shouldn't be done, but look at the things that were hacked. look at what was learned from that hacking, that hillary clinton got the questions to the debate and didn't report it? that's a horrible thing. >> reporter: this morning in response to publication of the unverified infti

trump tweeted, "intelligence agencies should never have allowed this fake news to leak into the public. are we living in nazi germany?" what were you driving at there? >> i think it was disgraceful, disgraceful that the intelligence agencies allowed any information that turned out to be so false and fake out, and that's something that nazi germany would have done and did do. >> reporter: the president-elect also lashed out at a reporter from cnn, the first news organization to report that the russian hacking assessment included the unverified claims. >> your organization is terrible. >> you're attacking our news organization. can you give us a chance to ask a question, sir. >> quiet. quiet. >> mr. president-elect -- >> she's asking a question. don't be rude. >> reporter: mr. trump declined to say whether he would keep sanctions imposed on russia by president obama. he also said he would work with russian president vladimir

>> if putin likes donald trump, i consider that an asset, not a liability, because we have a horrible relationship with russia. >> reporter: u.s. investigators are trying to verify what, if any aspects of the allegations related to mr. trump's conduct can be verified. russia was also a hot topic at the confirmation hearing for rex tillerson. president-elect trump's nominee for secretary of state. chip reid has that story. >> reporter: the toughest grilling of rex tillerson today came from a republican, senator marco rubio of florida. >> is vladimir putin a war criminal? >> i would not use that term. >> reporter: rubio, a leading critic of russia, graphically described russian bombing in syria. >> mr. putin has directed his military to conduct a devastating campaign that's targeted schools and markets and other civilian infrastructure that's resulted in the death of thousands of civilians. you are still not prepared to say that vladimir putin and his military have violated the rules of war and conducted war crimes in aleppo? >> those are very, very serious charges to make, and i would

information before reaching a conclusion. >> i find it discouraging your inability to cite that, which i think is globally accepted. >> reporter: rubio has not yet decided whether to support tillerson. if he votes no, that could put the oil executive's confirmation at risk in the narrowly divided senate. rubio has previously criticized tillerson, who has known putin for years, for accepting an order of friendship from the russian president, but today tillerson said the two nations will probably never be friends. >> our value systems are starkly different. >> reporter: tillerson also encountered some rough sailing when republican chairman bob corker asked about lobbying against sanctions on russia after it invaded crimea. >> i never lobbied against the sanctions. to my knowledge exxonmobil never lobbied against the sanctions. >> reporter: but corker reminded him of this. >> i think you called me during this time. >> reporter: and democrat bob menendez said he had hard evidence tillerson was mistaken. >> i have four different

millions of dollars as required by the lobbying disclosure act that lists exxonmobil's lobbying activities on four specific pieces of legislation authorizing sanctions. >> reporter: senator menendez also asked tillerson if he and president-elect trump have even talked about russia yet. scott, tillerson said no, to which menendez responded, "that's pretty amazing." president obama is back at the white house after delivering his farewell address in his hometown of chicago. mr. obama warned about threats to our democracy and urged americans to have faith in our country. dean reynolds was among the 18,000 in the hall when the president spoke. >> reporter: in his farewell address, the president urged americans to stay involved in the democratic process, and he emphasized the importance of a smooth and peaceful transition to his successor. in his farewell message --

[ crowd chanting "four more years" ] >> i can't do that. >> reporter: president obama said it's every citizen's responsibility to be guardians of america's democracy. >> democracy can buckle when it gives into fear. that's why i reject discrimination against muslim-americans who are just as patriotic as we are. >> reporter: his remarks on income inequality seem to reflect on the themes of the last election. >> if every economic issue is framed as a struggle between a hard-working white middle class and undeserving minority, then workers of all shades are going to be left fighting for scraps while the wealthy withdraw further into their private enclaves. >> reporter: the president offered a challenge to republicans trying to dismantle the affordable care act. >> if anyone can put together a bean that is demonstrably

[ applause ] >> reporter: after two terms in the spotlight, mr. obama issued a tearful tribute to his daughters and the first lady. >> michelle levon robinson, girl of the south side, you made the white house a place that belongs to everybody. malia and sasha, of all that i've done in my life, i'm most proud to be your dad. [ applause ] >> reporter: last night, the nation's 44th president closed with a promise. >> my fellow americans, it has been the honor of my life to serve you. i won't stop. i'm asking you to believe, not in my ability to bring about change but in yours. yes, we can. yes, we did. yes, we can.

god bless you. the "cbs overnight news" will be right back.

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president-elect donald trump has vowed to revamp how the federal government does business. one form of that business that may not change is the u.s. policy towards hostages. washington will not pay ransom to gain the release of a u.s. citizen. it doesn't even allow the family of the hostage to pay. and that can leave the hostage in an impossible spot. leslie stall has that story for "60 minutes." >> i am steven joel sotloff. i'm sure you know exactly who i am by now and why i'm appearing before you. >> reporter: steven joel sotloff was beeaded by isis. his execution on september 2, 2014, was seen around the world on a video. did you ever watch it? >> i have viewed steven's body with his head on his chest.

>> i had to see that, because i needed to be sure that that was him. >> reporter: steven was born and raised in miami, attended college in israel, and became a freelance journalist, reporting from war zones where information was scarce. like yemen, benghazi, libya, and syria, where he went in the summer of 2013. just before he crossed into aleppo, he called his dad. >> he contacted me and told me not to worry. but if i don't hear from him within four days, that i should get in touch with one of his colleagues. >> woe, that's ominous. >> reporter: he didn't hear from his son not for four days, but four excruciating months. then finally they got a ransom letter with demands for the government to free all the muslims in u.s. custody. or -- >> and then there's a last option. 100 million euros will secure steven's release.

>> $137 million. >> reporter: what was your reaction? >> reaction was, how the hell are we going to get this money together? >> reporter: they thought the u.s. government would help them, but they were bewildered, and then infuriated when they say they met a stone wall. the u.s. policy forbidding the paying of ransom. >> it's some of the hardest work that i've done. >> reporter: lisa monaco, assistant to president obama for counterterrorism, oversaw the hostage crisis. >> these are horrible choices. on the one hand, if you don't pay a ransom, you are putting an innocent life at risk. on the other hand, if you do, you're fuelling the very activity that's put them at risk in the first place. >> reporter: did you feel ever that the policy might be wrong? >> the policy that's been a decades old policy of not paying ransom i think is the right policy. >> reporter: so you didn't question that?

>> we didn't. we believed that was important to maintain. >> reporter: with the exception of the uk, most european countries do pay ransom without publicly admitting it. steven was held with 22 other hostages, including the three americans james foley, peter cassic, and kayla mueller, who were all killed. once the european governments paid ransom, isis released their citizens. one of whom smuggled out this letter from steven. >> he was speaking how he can't stand seeing all the captives leave from all different countries, how could the united states just stand by and not do anything? >> reporter: as the european hostages came out and spoke of mock executions and water boardings, they decided to try to raise some of the money themselves. but then they and the other u.s. families attended a meeting in washington with officials on the national security counci

>> all of us were saying why can't we try to save our kids? and they said because it's against the law. we do not negotiate with terrorists. >> reporter: did they say you would be prosecuted? >> they said, you could be prosecuted and also your donors could be prosecuted. >> reporter: so if i gave you money, i would be prosecuted? >> correct. >> reporter: did anybody say, are you kidding me? >> yes, we did. >> it was a little bit contentious. >> we could have verbally fought back. >> reporter: they were threatened they could be prosecuted. is that true? >> what's true is that some families felt threatened, and that was unacceptable, and that should never have happened. >> reporter: are you suggesting they may not have been threatened? >> no. what i'm suggesting is i'm not present when any threats were made, but what matters, leslie, is these families felt that way as they were going through the most horrific time they with

>> reporter: was that the policy, was that true? could they have actually been prosecuted? could someone who contributed to pay ransom also be prosecuted? >> so what's true is that the justice department has never prosecuted a family or friends of a family that has paid a ransom. >> reporter: but was it the policy? >> well, what the policy is, the united states government will not pay ransoms or make concessions to hostage takers. >> reporter: that policy is based in part on a presumption that paying ransom invites more hostage taking. but that is refuted by a new study that examined the case of every known western hostage taken since 9/11. it was co-authored by peter bergen, a counterterrorism expert for the nonpartisan ne america foundation. >> they don't know necessarily you're american when they take you. so a target of opportunity. someansom, the french, germans,e spanish.

>> even though they don't admit it. >> they don't admit that they do. americans are huge outliers here. you're twice as likely to have a negative outcome compared to every other western hostage. >> reporter: you mean murdered? >> murdered, die in captivity or remain in captivity. >> reporter: 14 of the european hostages held with steven made it home. four americans and two brits died. i keep playing in my own head this horrible situation, where the american hostages watched the other ones be set free. and i wonder if it wouldn't have been better if our government did what the european governments did, which is pay ransom but then deny it in order to save their citizens. why couldn't we have done that? >> we would still be fueling their terror acty.

whether it's hostage taking or whether it's terrorist plots, to kill americans here in the homeland or elsewhere is not activity that the united states government should be in the business of funding. >> reporter: what do you say to critics of the policy of not paying ransom, that the beheadings of the americans ended up having more value to isis than any money would have been, that's really what put them on the international map, these beheading videos were a gold mine for isis. do you see it that way? >> i don't. and i think it's giving brutal, murderous thugs too much credit. >> you can see the full report on our website, cbsnews.com. the "ovehtrnigs" newl wilbe right back. i will never wash my hair again. i will never never wash my hair again

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it is to switch and save on homeowners insurance. people in scotland take their whiskey very seriously. and if you want to call your drink scotch, there are a list of rules. but one american in london is breaking those rules and our jonathan vigliotti got that story. >> reporter: here in the uk, that's perfectly acceptable to order a scotch whiskey. scotch is a billion dollar a year industry here in the uk. many of the brands are centuries old. but now newcomers -- thank you -- are mixing up this

ancient recipe. ♪ whiskey is the life of man ♪ whiskey from an old tin can >> reporter: it's amber tones and smoky notes have seduced for centuries, and given birth to one of the uk's most lucrative industries. in the rolling hills of scotland, making scotch whiskey is a work of art. the grains are mashed, fermented, then distilled. and finally aged in wooden casts. the bold tasting scotch inside is then bottled and sold. it's a 500-year-old spirit protected by law. and drinking it can pack a lot of rules. just watch master distiller richard patterson's tutorial. >> this is the way you hold it, not this way. definitely not this way. but if i ever see you nosing it,

nosing it like this, i'll kill you. >> reporter: but in the small london left, whiskey blender john glazer is dropping the pretension and adding a new range of flavors. >> a lot of people think scotch whiskey is high handed, that there are rules and you have to drink it a certain way. >> it is a little scary. >> it's frightening. there's so many different scotch whiskeys. so it is intimidating. we try to break all that down. >> reporter: his blends are to whiskey what craft beer is to lager. >> we're making whiskeys that have a big richness, sweetness, softness that's more in tune with the taste of the day, we think. >> reporter: whisper whiskey, it's being dubbed. mellower and lighter for the millennial palate. the production process borrows from tradition. he buys single malts from scottish distilleries. like blenders of the past, he mixes them. but he goes one step further, maturing the blend again. in especially crafted castsha

when you're tasting, when you're assessing, it's a technique that's won international praise. and scottish scorn. >> we've had run-ins with authorities of the industry because we like to do things differently as a business. >> reporter: his innovative casts led to one of his whiskeys being banned by the scotch whiskey association, the industry's old guard. rosemary gallagher laid down the law. >> it has to be from scotland. it has to be matured in casts. we're trying to encourage it within those guidelines. >> reporter: innovation is needed. in 2015 for the first time ever, not a single scotch appeared in the whiskey bible's top three list. a japanese whiskey ranked number one. this year, scotch is on the list, but with a lighter, caramel-vanilla blend.

these whisper whiskeys are even welcomed in cocktails, once openly frowned upon by scotch purists. >> if you're just doing things the way you always have, you're going to fall behind. >> reporter: john glazer hopes his customized blends are part of the equation. >> we can blend up whatever you want, but why don't you do it? let's turn the responsibility over to you. >> reporter: let's do a "cbs this morning" scotch whiskey. i'm thinking for charlie, it's going to be smokey. for norah, floral. and for gail, spicy. >> how smoky do you want it to be? >> i want it to be a balance of all three. >> that's the smoky one. that's charlie. >> next, we'll do the spicy one. >> emphasis on spicy. >> so floral for norah. there you go. all right. moment of truth.

>> cheers.

[ speaking foreign language ] it's thursday, january 12th, 2017. this is the "cbs morning news." with eight days until the inauguration, the trump transition heats up. >> it's all fake news. it's phony stuff. it didn't happen. the president-elect wailed against reports but finally admitted they meddled in the election. they took on two of the president-elect's top picks. >> is vladimir putin a war criminal. >> i would not use that term.