How do I rotate the canvas (black area) of clip?

Hi I am a very very very new user of Final Cut Pro X so please explain this to me like I'm a 2 year old. I've imported a clip from my iPhone (yes gotta start somewhere), but it's on portrait layout. I've worked out how to transform the clip but it crops it in the centre, and the black canvas (don't know what that area is called in FCP X) is still on portrait orientation.
Any help appreciated? Also, the video when I exported it is very blurry and out of focus, though when I watched the unedited clip it was fine.
Hello new challenge/headache FCP X!
Thanks in advance.

FCP only works in standard video formats. There are no portrait TVs.

You can trick FCP into creating a non-standard format. Start here www.fcpxbook.com/CustomProjectSize.html

Yes, exactly, I don't want the video in portrait format, how can I rotate it to make it landscape? When I rotate it the canvas remains in portrait.

Did you read the link I put in the message? You can't rotate the viewer. You have to create a project in the right shape.