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Swiss Officials Believe Fire Caused By Champagne Sparklers; At Least 40 Dead, 119 Injured In Fire At Swiss Ski Resort Bar; No Major Change In Troop Levels After Trump Threatens Iran; S&P 500 Posts Third Straight Year Of Double-Digit Gains In 2025; China's BYD Overtakes Tesla In 2025 Deliveries; A New National Park At The Tip Of South America. Aired 4-5p ET
Aired January 02, 2026 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:16]
LYNDA KINKADE, CNN INTERNATIONAL ANCHOR: A late climb for stocks on the first day of the trading year in 2026. The Dow closing up more than 300
points. Those are the markets and these are the main events.
Swiss officials say champagne bottle sparklers likely started that deadly fire at a bar on New Year's eve. Families continue to search for missing
loved ones.
The Chinese carmaker, BYD overtakes Tesla in global E.V. sales.
And a respite for Italian pasta makers, the U.S. reducing proposed tariffs.
Live from Atlanta. It is Friday, January 2nd. I am Lynda Kinkade, in for Richard Quest and this is QUEST MEANS BUSINESS.
Good evening. We are tracking the investigation into that deadly New Year's Eve fire in Switzerland. Prosecutors say they believe sparklers in
champagne bottles caused the inferno at a crowded ski resort bar.
(BEGIN VIDEO CLIP)
BEATRICE PILLOUD, VALAIS CANTON ATTORNEY GENERAL (through translator): Some hypotheses can be confirmed. As things stand, everything points to the fire
starting from sparklers or flares placed in champagne bottles that came too close to the ceiling, which very rapidly led to a flashover fire.
(END VIDEO CLIP)
KINKADE: We have some new video in that appears to show the initial moments when the blaze began. You can see the fire breaking out there in the
ceiling, and this video appears to show not everyone realized how serious the fire was at first, with some people still dancing while the ceiling
burned.
In another video, the flames can be seen growing larger as people try to escape. It killed at least 40 people and injured about 120 others. One
survivor sharing his story.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through translator): We were yelling "Fire! Fire!" And then we thought it was a joke or that it wasn't necessarily serious. And
then suddenly a huge cloud of black smoke. We couldn't breathe anymore, and then maybe we had to get out and everyone got out. But a crowd gathered so
we couldn't get out, so we tried to hide.
Then when I got back upstairs, I thought I was either going to die or I managed to get out. But the only way was through a window. But the windows
were blocked. So I grabbed a table and tried to smash it against a window. I couldn't and I thought, well, I am going to die.
But finally, I managed to kick the glass, it broke and then we got out. We managed to get people out. It is true. I lost my shoes. I lost my coat. I
lost all my possessions. But in the end, that's not what matters. I am still alive and that's that and we pray for those who stayed behind.
(END VIDEO CLIP)
KINKADE: Our Nic Robertson has the latest from the scene.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: We are right in the middle of Crans-Montana here. The mountains in the background, Le
Constellation Bar right here.
The atmosphere here is very quiet. It is very subdued. This town, it is a very upmarket ski resort. You can see that when you look in the stores
around here.
What we know about what happened just over 24 hours ago now, in the very early hours of the 1st of January, the downstairs underground bar was
crowded. There were a lot of people in there, and we know from talking to youngsters in this town that this bar was popular with sort of 16, 17, 18-
year-olds 19-year-olds, young 20s -- how many people were in the downstairs underground bar at the time? That's part of the investigation.
But already investigators and fire experts and the hospitals, in fact, are talking about a downdraft that the fire took hold and spread so quickly.
They are dealing in the hospitals, they say, where people with severe burns, in some cases, the police say that they are still trying to identify
even the injured and this is a hugely painful time for the families.
And we've seen families here in the streets. A father whose son is still missing, he was on his knees weeping in the streets. That sense of pain and
grief is very palpable here.
A lot of journalists here, there are some dignitaries arriving. We know that there have been French among the dead, injured and missing. We
understand there are Italians among the dead, injured and missing. But of course, there are so many questions about the dead and injured. The
identification, police are saying that could take days.
But the fact that you have senior politicians from outside Switzerland coming really shows the gravity and the reach of this tragedy.
Nic Robertson, CNN, Crans-Montana, Switzerland.
(END VIDEOTAPE)
[16:05:10 ]
KINKADE: Well, the injured are from at least nine different countries, including France and Italy. Switzerland transferring dozens of patients to
other parts of Europe for specialist treatment.
(BEGIN VIDEO CLIP)
MATHIAS REYNARD, PRESIDENT, VALAIS STATE COUNCIL (through translator): With around 50 injured patients who have been transferred or will soon be
transferred to European countries for treatment of severe burns.
(END VIDEO CLIP)
KINKADE: Well, joining me now is Dr. Stian Almeland. He is a consultant plastic surgeon at the Norwegian National Burn Center.
Thanks so much for your time.
DR. STIAN ALMELAND, CONSULTANT PLASTIC SURGEON, NORWEGIAN NATIONAL BURN CENTER: Thank you.
KINKADE: So this has been described as a very fast-burning fire.
From a burn specialist perspective, how does that affect the type of injuries and the severity of the injuries that were sustained?
ALMELAND: Well, these type of fires create an enormous -- develop really quickly and create very severe burns because people are trapped inside and
it is difficult to get out.
And then we first expressed the enormous tragedy that this is that we from the European Burns Association and the European burn community stand with
the Swiss and the patients of the victims in this situation.
KINKADE: And we know that, given over 100 people were injured, you know, the local hospitals were overwhelmed, patients had to be transferred to
Geneva, to Milan, to Zurich. What does that tell you about the sort of needs that those patients have? And what sort of treatment would they get
at those specialty facilities?
ALMELAND: They will get high level burn care and this type of situation, this type of tragedy is an enormous tragedy that no country in Europe will
be able to do to cope with on their own, so they depend on the European community, and that's why we have worked from the European Burns
Association with the E.U. and the DG-ECHO for the past 10 years in developing a burns response plan, which is now at full play, and the
coordination by the Swiss at this moment, and in collaboration with the E.U. and all the offers that come in from more than 20 countries at the
moment in Europe tells you about the enormous effort and the response that is being effected.
And the treatment that these patients will get is highly specialized care because high specialized burn care is very, very centralized in each
country and the capacity to care is rather small and that cases like this can never be dealt with in a country on its own. So you're depending on
dispatching or transporting patients to specialist care in other countries.
KINKADE: And in the days and the weeks after you know, these injuries were sustained. What are the greatest risks that clinicians are most concerned
about for these patients?
ALMELAND: Well immediately, they need surgical care. So they need to have their burns operated and they need intensive care to have organ support
throughout this situation and for this type of indoor fires, inhalation injuries and organ failure, including lung failure is one of the greatest
problems that can come in the early and late stages.
And then so this treatment that they need is not just a treatment for the next few days, it is a treatment for weeks and even months.
KINKADE: So what are these specialist burn centers have that regular hospitals wouldn't have to help deal with the seriousness of these
injuries?
ALMELAND: Well first of all, to treat burns, you need a specialized multidisciplinary care teams. So you need specialized trained nurses, you
need surgeons and intensivists and even physiotherapists and occupational therapists and the whole team. And this team setup is what makes it
possible to care for burns and make them to survive, and then come back to life and their livelihood.
And I think this type of specialist care is such resource demanding that most countries have chosen to centralize these in specialized centers where
this type of care can be given by specialized burn teams.
KINKADE: And we know a lot of these people that were injured are young kids, like teenagers, people in their early 20s. What does that mean when
it comes to their recovery, given their age?
ALMELAND: Well, actually, age is a benefit for them because younger patients are able to return to life and survive even larger injuries than
older.
[16:10:10]
So actually, that's a benefit in this situation, but also, it is a challenge because pediatric specialized burn care is even more limited than
all burn care in all countries.
KINKADE: I certainly wish everyone who has been impacted and injured in this horrific tragedy recovers as quickly as possible.
Dr. Stian Almeland, we appreciate your time. Thanks so much.
Widening protests in Iran prompt a warning from U.S. President Donald Trump, who says the U.S. is locked and loaded and ready to go if the regime
takes deadly action. We will have that story next.
(COMMERCIAL BREAK)
KINKADE: U.S. President Donald Trump is warning Iran that the U.S. is ready to intervene if the country takes violent steps to stop growing protests.
Demonstrations are worsening economic conditions across Iran, and they turned deadly this week as protesters clashed with police.
In a social media post, Mr. Trump wrote if: "Iran shoots violently and kills peaceful protesters, which is their custom, the United States of
America will come to their rescue. We are locked and loaded and ready to go."
Well, CNN senior White House reporter, Kevin Liptak joins me now. Good to have you with us, Kevin.
So the U.S. is locked and loaded and ready to go. Those words from the U.S. President to Iran. What exactly does that mean?
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: It is not precisely clear. The President didn't say what exactly was locked and loaded. We talked to
officials who said that the American troop presence in the Middle East hasn't been increased. Their preparation levels haven't been changed.
What one White House official told us is that this was intended as a strong threat, that the President hasn't taken any action here, but when you talk
to officials, they do describe a hypothetical list of steps that the President could take that stopped short of firing a missile into Iran.
You know, he could do what President Biden did back in 2022, which was the last time there were major street protests in Iran and he used American
technology to bolster internet connectivity and cell phone connectivity, essentially trying to find a way around the regime's crackdown on
information. You hear talk of potential sanctions on regime figures. Of course, there are already a load of American sanctions on Iran, so it is
not clear what effect precisely those would have.
[16:15:09]
And then the other hypothetical option you hear talked about is some sort of cyber action targeting some of the regimes activities on the cyber
front, which is something that the U.S. has done previously. But again, those are kind of in the hypothetical bucket, you know, the President
doesn't have a list of options that we've learned of that he is signing off on.
I still think it is clear the President does have a greater appetite for risk with Iran than some of his predecessors. You know, you saw him target
those Iranian nuclear sites back in June, even throwing his support behind these protests is more than what some previous American presidents have
done.
You know, back in 2009, when there were massive street protests in Iran, President Obama really didn't say anything about them at all, fearing that
that could give the regime pretext to claim that they were backed by the West, but Obama later said he regretted that. But clearly, President Trump,
not having any of those misgivings.
But it does, I think, lead to some sort of dilemma. You know, if the President doesn't take action as he is threatening, it could potentially
embolden the regime to crack down even further, but if he does intervene, certainly it poses the risk of greater escalation.
And you hear some members of the Iranian government really pushing back on the President, the head of Iran's Parliament said today that all American
bases and forces across the entire region will be legitimate targets if the U.S. interferes here and we've seen around in the past, target bases in the
Middle East, including the Al-Udeid Air Base in Qatar.
And so it all, I think, demonstrates that the President is inserting himself into quite a volatile situation, but it doesn't seem clear yet
precisely what he is willing to do.
KINKADE: And just quickly, Kevin, these have been described as the largest protests in three years. Do we know if the U.S. has had any discussions,
coordination with allies in the region concerning their human rights issues here?
LIPTAK: It doesn't appear as if there has been any coordination quite yet and these protests have been going on for some days now, and the
President's remark on Truth Social was actually the first sort of official American response to them at all.
But as they continue and as they potentially spread around the country, I don't think it would be a surprise to learn that the U.S. was coordinating
with its allies in the region, allies in Europe as well.
You know, we do know that the President spoke earlier this week down here in Palm Beach with the Israeli Prime Minister, Benjamin Netanyahu. He also
saw him again on New Year's Eve, and there was a quite intensive talk about Iran during that meeting.
You know, the President talked about hearing reports that Iran was potentially reconstituting its nuclear and ballistic missile programs,
threatening further airstrikes if he heard that to be the case.
But at that time, you know, he was asked whether he supported regime change in Iran and he stopped short of saying that, but he did describe the regime
there as vicious, vicious people -- Lynda.
KINKADE: All right, Kevin Liptak for us coming to us from Florida, much appreciated. Thank you.
Well, Venezuela's President says his country is willing to hold serious talks with the U.S. about drug trafficking and other issues. Nicolas Maduro
told a Spanish journalist he would welcome U.S. investment in Venezuela if natural resources are what the Trump administration is after.
Well, U.S. official says Venezuela has detained at least five Americans in recent months. That official says -- people in the Trump administration,
believe Maduro is holding them for leverage against the U.S. amid the rising tensions.
CNN's Sean Lyngaas joins us now from Washington.
Sean, good to have you with us. So at least five U.S. citizens detained in Venezuela. We are hearing that the U.S. believes they are being held as
leverage. What more do we know about their cases?
SEAN LYNGAAS, CNN CYBERSECURITY REPORTER: All right, Lynda, we are starting to learn a little bit more. We've been making calls these last two days
here in Washington, and I talked to the aunts of one of the Americans that we believe is in that category of being detained recently and she has been
frustrated by her inability to get through to the U.S. government.
This is a 28-year-old man. He is from New York, and he was traveling in Latin America and didn't appear to commit any crime of any sort, but did
enter Venezuela and the last his family heard from him was on December 8th. So it has been nearly a month. So that's one example.
The other examples aren't quite clear yet, but we know that Maduro has a history of doing this, and as do other authoritarian leaders in Russia and
Iran, where they can use detained citizens of western countries as pawns in regional standoffs.
But this obviously comes against an enormous amount of tension between the U.S. and Venezuela. That video you played of Nicolas Maduro saying he would
be open to talking was extraordinary because it came the week of in which U.S. military conducted multiple strikes on boats in the Caribbean and
following a CIA drone strike on a facility in Venezuela.
[16:20:23]
So his rhetoric doesn't seem to match the reality of what has been going on, on the ground. And now the families of those detained Americans fear
that they're going to be caught up in this geopolitical standoff -- Lynda.
KINKADE: So, Sean, Maduro in that video says he is willing to speak to U.S. officials. Is there any sense that the U.S. is willing to open up a
dialogue?
LYNGAAS: Look, I think, President Trump has shown willingness to try to talk to anyone about this kind of thing. He is certainly one who likes to
engage directly with leaders. So I don't think that's out of the question. It is just a question of how and to what end. The Trump administration has
not -- you know, has denied that it explicitly wants regime change, but it has certainly twisted a lot of the levers that could lead to that.
So we are left with that. There seem to be some back-channel attempts from at least the Venezuelan side, to say, look, we are willing to talk, but it
really is again, given all that has transpired with U.S. military might in the region, an open question as to whether those talks could accomplish
anything -- Lynda.
KINKADE: All right, Sean Lyngaas for us in D.C. Good to have you with us. Thank you.
KINKADE: We are getting new insight into the health of Donald Trump. "The Wall Street Journal" reached out to The White House with reporting that
said, some of those close to the 79-year-old U.S. President feels that he is showing signs of aging.
This led to Mr. Trump giving the paper an impromptu and virtually unprecedented interview about his health. Alayna Treene reports.
(BEGIN VIDEOTAPE)
ALAYNA TREENE, CNN WHITE HOUSE REPORTER: President Donald Trump told "The Wall Street Journal" in an interview published Thursday that he takes a
higher dose of aspirin than his doctors have recommended, blaming that for the visible hand bruises that have generated questions about his health.
He said, "They say aspirin is good for thinning out the blood, and I don't want thick blood pouring through my heart." The president, who is 79, said
that's why he takes a larger dose. He went on to say, "I want nice thin blood pouring through my heart. Does that make sense? I am a little bit
superstitious."
He also noted that he has been taking aspirin for 25 years. Now, Trump's physician, Dr. Sean Barbabella, told "The Journal" that the President takes
325 milligrams of aspirin daily. The interview appeared to be one of the most extensive conversations that Trump has had with journalists on his
health, as scrutiny has intensified this year over his age, fitness for office and whether he is being sufficiently transparent with his medical
information.
Trump has long had bruising on his right hand, which CNN has reported predated his return to The White House, but it has drawn more attention
after he began trying to cover it with heavy makeup and bandages and shield it from cameras with his other hand. Some people have also raised concerns
about swelling in his legs and his appearing to doze during public events.
Now, The White House has previously explained that the bruising on his right hand is due to constant hand shaking, along with a regular regimen of
taking aspirin that can make such discoloration more common.
But for Dr. Jonathan Reiner, he is a professor at George Washington University School of Medicine and Health Sciences who was also a longtime
cardiologist for former Vice President Dick Cheney, he says that the latest updates from Trump and his team raise more questions than they answered.
Reiner said, "It is uncommon to see that kind of bruising with one aspirin a day. My question is, does the President take any medications that have
not been disclosed by The White House?"
Now, 325 milligrams of aspirin each day is not a very high dose, Reiner said, but when someone sprains an ankle, for example, they might take 325
milligrams of aspirin every four hours, which could be considered a high dose, but otherwise, Reiner argued that there is no medical reason to take
that much on a regular daily basis.
Now, in a statement to CNN, the President's physician said Trump remains an exceptional health and perfectly suited to execute his duties as commander-
in-chief.
Alayna Treene, CNN, Washington.
(END VIDEOTAPE)
KINKADE: Well, the S&P 500 put off a threepeat in 2025, that is double digit gains three years in a row. Some experts think 2026 could be another
banner year. We will be live at the New York Stock Exchange next.
(COMMERCIAL BREAK)
[16:27:43]
KINKADE: Hello. I am Lynda Kinkade. There is more QUEST MEANS BUSINESS in a moment when U.S. stocks just finished their third straight year of double
digit gains. We are going to discuss if they can make it a four.
And the Warren Buffett era is officially over at Berkshire Hathaway. We will hear from executives about what they learned from him.
Before that, the headlines this hour: Swiss investigators believe it was sparklers in champagne bottles that ignited that deadly fire at a ski
resort celebrating New Year's. They say the blaze began when those sparklers came too close to the ceiling, leading to what is known as a
flashover. At least 40 people were killed, and a number of others are still missing.
President Donald Trump says the U.S. is locked and loaded and ready to intervene to protect protesters rallying against the Iran regime. Tempers
have flared in several Iranian cities this week, and widespread anger over the country's crippling economic problems.
State media reported at least three people have been killed in clashes with police on Thursday when protesters stormed a police station.
An earthquake in Mexico has caused at least one death and dozens of injuries. The 6.5 magnitude quake was centered in the southern state of
Guerrero. The shaking felt, 400 kilometers from Mexico City. It struck while the Mexican President was delivering her morning conference. She and
journalists had to evacuate.
U.S. markets have just closed out the first full day of trading of 2026. Stocks ending the day relatively flat, with the Dow and the S&P eking out
some small gains. A muted start after a banner year for U.S. investors, the S&P 500 rose more than 16 percent in 2025, marking three straight years of
double digit gains. That's only the sixth time in history that that has happened, and it could be set to continue.
Experts at Deutsche Bank are predicting another year of double digit gains ahead. Well, Tim Anderson is managing director at TJM Investments. He joins
us from the New York Stock Exchange.
Happy new year.
TIM ANDERSON, MANAGING DIRECTOR, TJM INVESTMENTS: Happy New Year, Lynda. It is great to be with you on the first trading day of the year.
KINKADE: It is great to have you with us. So we've had three incredible years of growth on the S&P 500. Can we make it a fourth of double digit
growth?
[16:30:17]
ANDERSON: Look, a lot of people are going to be concerned about whether or not you can have a double-digit gains for the fourth year in a row. But the
people that really manage big money, what they are going to be most concerned about is, where is the economy going and where -- what is the
market outlook for the next -- for 2026, and 2027, and how do they want to be positioned for the next two years? Not what's happened in the last three
years.
And the reality is the environment is very positive for stocks. We were in a interest rate cutting cycle. Although, the Fed might not be ready to cut,
make a fourth cut in a row in -- at the end of January. By the time we get to the end of January, they might be there if we continue to see very
benign inflation numbers.
And along with weak job gains, we are also in an environment where you are going to most likely start to see some significant earnings gains from
companies that have institute -- instituted a lot of A.I. infrastructure into their operating systems. And also, most likely some continued
productivity gains in the overall economy.
KINKADE: So, inflation, of course, Tim, is still on the minds of investors with the Fed's policy path forward, it's kind of uncertain right now. What
do you see as the biggest risks going forward?
ANDERSON: Well, look if -- obviously, if we were to get an uptick in inflation, that would potentially be a risk. But the reality is, the
inflation -- the most recent inflation numbers that came out on the PCE numbers, the most widely followed inflation numbers by the Fed, showed at a
-- at a low -- multi-year low of 2.7 percent, and every indication is that that is going to trend into the mid twos.
It might not get to this mythical target that the Fed has of 2.0 percent, but it certainly feels like the inflation numbers are going to be
continuing to improve.
KINKADE: Yes.
ANDERSON: Now, we could have -- we could have geopolitical risks of a -- risk of a geopolitical event at -- that -- that's always a possibility, but
there is also the possibility that we could get positive geopolitical events if we got a resolution in the Ukraine-Russia war. Or if, maybe,
there was a -- some -- the mullahs in Iran got overthrown, which are a little bit in the headlines right now, with all the protests going on
there.
KINKADE: Yes.
ANDERSON: Those would probably be positive economic developments.
KINKADE: And Tim --
(CROSSTALK)
ANDERSON: Geopolitical developments.
KINKADE: Yes, right. With the talk about a potential, you know, new Fed chair, could concerns about political influence, especially if someone
takes that position who, you know, might want to appease the White House, impact investor confidence?
ANDERSON: Well, I would say that certainly, if Kevin Hassett has announced as the -- as the president's choice for the new Fed chair, that you will
definitely hear that because he's been very closely aligned with President Trump, not only during the first year and change of his first term, but in
the past. Also, Kevin Warsh is the fed chair nominee, he is thought to be a very steady fed person who has a lot of history with the Fed, not
necessarily dovish or hawkish, but he has some very strong opinions that a lot of the methodology and the operations of the Fed need to be rehauled.
And for an organization that probably hasn't had much significant change for close to 50 years, he is probably on the right track.
KINKADE: All right. We will wait and see. Tim Anderson, managing director at TJM Investments. Thanks so much.
ANDERSON: And Happy New Year to you and all of your viewers.
KINKADE: Thank you very much. Happy New Year to you indeed.
Well, 2025 was the year that Tesla lost its crown as the world's E.V. maker. At the top of its fallen, BYD now selling more than 2.2 million
passenger cars last year. That's nearly a 28 percent jump.
[16:35:02]
With Tesla's sales, on the other hand, dropped almost nine percent, 8.6 percent it delivered 1.6 million cars.
Anna Cooban joins us now from London. So, BYD overtaking Tesla, Anna, as the top E.V. maker. What drove this shift?
ANNA COOBAN, CNN BUSINESS AND ECONOMICS REPORTER: Well, this is a momentous moment, but is not unexpected. You know, these sort of sales declines
happened over 2024, it's now the second consecutive year of sales drop. It's also the largest annual sales drop that near nine percent last year
for Tesla.
And the reasons behind this, Lynda, I mean, let's just take a step back. Tesla, at one point, for the best part of the last decade, seemed
absolutely unstoppable. For various years, it had sales growth of over 50 percent. So, we're now in a very different environment. And the reasons
behind this are numerous. One of them is backlash against Elon Musk, the head of Tesla we saw last year him taking a very senior position in the
U.S. government, spearheading mass layoffs, expressing support for far- right parties in Europe, there were protests on both sides of the pond that really dented Tesla's popularity.
And then, also, of course, we have seen rising competition from Chinese E.V. makers like BYD that are able to, for the most part, produce cars more
cheaply, and therefore, sell them more cheaply. But also, the environment, the regulatory environment has changed, and this is really important,
because the E.V. transition seems like it was on a tear, but actually, automakers have been signaling to regulators for a while now that the
transition is not moving as fast as they'd hoped. We've seen in both the U.S. and Europe, a rollback of certain emission standards in the past few
weeks, the rollback of a tax credit that was helping consumers in the U.S.
And so, these are all the reasons which explain why Tesla has been dethroned, which at once seems completely untouchable.
KINKADE: So, BYD's growth hit 28 percent. Anna, how much was that driven in China verse overseas?
COOBAN: Well, BYD doesn't sell its cars in the U.S. So, the fact that it's able to achieve this milestone without the U.S. an enormous car market is
pretty phenomenal. Europe has been quite wary of import imported Chinese cars. They upped their tariffs on Chinese cars around a year ago because of
the concern that these cheaper models were going to compete unfairly with European car makers as well.
But I would also say Lynda that Tesla will be, you know, feeling concerned about this data, concerned about this dethroning, but it has very much
tried to become more than just an E.V. maker in the past few years. It's spearheading or jumping on technologies like artificial intelligence,
robotics, self-driving, and that helps explain why, in this case, we are not seeing investors run for the exit in an extreme way with Tesla.
Last year, it was still suffering with all of these issues, but yet its stock was, you know, increased by around 11 percent. So, that gives
indication into that, yes, Tesla has been floundering with the car sales, part of its business, which is, of course, huge. But it is going into
different pastures, and that might be one of the reasons why investors are not too concerned at the moment.
KINKADE: All right. Anna Cooban, Happy New Year. Good to have you with us. Thank you.
The past lovers around the U.S., like myself, are breathing a sigh of relief. The U.S. is saying pasta la vista to the proposed 107 percent
tariffs on Italian pasta makers. We are going to discuss the new rate of your plate next.
(COMMERCIAL BREAK)
[16:41:01]
KINKADE: Welcome back. I'm Lynda Kinkade.
The U.S. is set to significantly reduce proposed tariffs on Italian pasta makers. 13 pasta companies were set to face 92 percent tariffs later this
year. It comes after anti-dumping complaints from American firms, accusing the Italians of underpricing pasta sent to the U.S.
With the proposed U.S. tariffs were in addition to a 15 percent tariff on most E.U. goods. Now, this would have brought the pasta levies to 107
percent. The U.S. says many of the anti-dumping concerns have been addressed. So, with the new levies will be between 24 and 29 percent, plus,
the E.U. tariffs.
The final rate is set to be announced in March with CNN's global economic analyst Rana Foroohar is with us. Happy New Year, Rana. Good to see you.
RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Happy New Year. Good to see you.
KINKADE: Yes. So, this is some positive news for people who love pasta, but also, you know, in the days leading up to this, we saw the tariffs drop on
cabinets and furniture. Is this move by the Trump administration is apolitical or is it economic?
FOROOHAR: Great question. I mean, it's very difficult with this administration to detangle those two things, and that's one of the
challenges here. You know, you have to look at, well, why did we have this tariff on pasta to begin with? A couple of U.S. companies brought a
legitimate trade case saying, hey, these Italian companies are dumping. That means pushing cheap products that have been made in ways that are,
perhaps, not compliant with WTO rules on the U.S. market. They are undercutting domestic producers.
Now, that's exactly the kind of thing that the Trump administration has said it wants to address. You know, it does not want foreign companies
coming in and raising prices. It doesn't want monopoly power in general. That's something interestingly that is bipartisan between what Trump is
doing and what Biden did before.
But now, they are saying, well, we got some new information. We don't need to have the penalties be so high. We don't know what that information is,
and we are left with a feeling, you know, as we are so many times with Trump and the tariff strategy, that it's very capricious. It's very much
based on what the President feels he wants to do today politically. You know, it's worth saying that Italy is a political ally for the Trump
administration, much more so than many other European countries.
So, I have to think that this is not just an economic play, but a political one as well.
KINKADE: Yes, we should have had a bowl of pasta for this conversation. All of those pictures are making me so hungry.
FOROOHAR: Absolutely.
You know, and I mean, the other thing I'll say is it makes a lot of sense politically for the president to be doing this at a time when food
inflation in general has been higher, because pasta is a staple that people tend to turn to when they are not buying beef, when they are not buying
chicken. This is a cheap way to feed your family a nutritious meal. So, it also makes domestic political sense to say, oh, hey, I'm going to come in
and with this large ass roll back this tariff.
KINKADE: Exactly. But even though he's doing that, he is also doubling down on the tariff policy, saying that it's an overwhelming benefit for the U.S.
and consumers. Is that accurate in today's economy, Rana?
FOROOHAR: You know, I don't think that you can say that. You know, arguably, it's been a negative in many areas. You know, we've seen food
prices go up, we've seen lumber prices go up, energy prices go up. You know, it's -- there are a lot of reasons for inflation right now. It's not
just down to tariffs, but it certainly hasn't helped.
Also, we are waiting to see whether the Supreme Court this year is going to rule that Trump's entire tariff strategy may, in fact, be illegal, at which
point, boy, talk about a spaghetti bowl to untangle.
You know, you are going to have companies that have paid these tariffs abroad, probably suing the U.S. and wanting their tariff money back, and
that is going to be a real, real mess.
KINKADE: That is going to cause a massive political headache. Many bowls of pasta will be needed for some comfort food. I tell you.
[16:44:59]
In terms of other tariffs going forward, like, how are the ongoing delays like that, the Chinese semiconductor tariffs affecting U.S. companies and
supply chains?
FOROOHAR: So, I -- this is not a kind of a one and done sort of thing, you know. Semiconductors companies have been worrying about that now for years,
right? I mean, the some of those tariffs, those technology tariffs, with China, started during the first Trump administration. They were continued
by the Biden administration. They have now been added to, sometimes changed by the White House during Trump 2. So, there's a lot of confusion. But
nobody thinks, nobody I talked to in business, thinks that we're somehow going to magically reset to 1995.
People know that we are in a decoupling world, particularly, in strategic areas, like chips. Like ships, the maritime sector is decoupling. You know,
biotech, pharmaceuticals, clean energy. All these areas are areas where the U.S. is going to try and build more resiliency and there is going to be
higher prices to pay in the short term in order for changes Longer term that the White House hopes will be positive.
KINKADE: We'll have to leave it there for now. Rana Foroohar. Always a pleasure. All the best for 2026.
FOROOHAR: You too. You too. Thank you.
KINKADE: Well, Bulgaria begins the new year with a new currency. It's now the eurozone's 21st member, and people there have been giving plenty of
time to adjust, as our Ben Hunte explains.
(BEGIN VIDEOTAPE)
BEN HUNTE, CNN INTERNATIONAL ANCHOR (voice over): The clatter of newly minted coins roll off an assembly line, shining with the national symbols
of Bulgaria. These new euros represent the eurozone's 21st member and a currency switch almost two decades in the making.
It's already a historic New Year in Bulgaria.
On January 1st, cash machines began dispensing euros, instead of the old Bulgarian currency, the lev. Bank accounts were converted to euros, and
there is a one-month transitional period where both the lev and the euro can be used for cash payments, though change will be given in euros.
Some people say it's off to a good start.
UNIDENTIFIED MALE: Our money will be in a different currency. If I have 10,000 levs, now, I will have 5,100 euros. It's all the same, and I think
it will be better.
HUNTE (voice over): But it's taken a long time for Bulgaria to meet the economic criteria to adopt the euro after joining the European Union in
2007. It's one of the poorest countries in the E.U. and polls show that about half the Bulgarians surveyed fear the currency switch will drive up
prices.
There are also worries about who is in charge during this critical period. The country's prime minister resigned last month after mass anti-corruption
protests over a 2026 budget proposal.
And it's likely Bulgaria will soon face its eighth election in five years. Some people say, it's just not the right time for such a switch.
UNIDENTIFIED FEMALE (through translator): Right now is probably the most inappropriate time given the situation in all of Europe. These are my
concerns. I don't think anyone has anything against the euro as a currency, but rather, to the timing. And ultimately, I don't believe that erasing and
eliminating the lev within the span of a single month is the best approach.
HUNTE (voice over): Other Bulgarians say they expect it will go smoother than some people think.
UNIDENTIFIED FEMALE: Anyone who goes on a trip will not have problems exchanging currency. Now, everything will be normal. Even the people in the
shops are already prepared and have no worries about accepting the lev and giving euros back in change. These are normal things that we will get used
to in a week.
HUNTE (voice over): National authorities have been set up to make sure businesses are fairly converting prices, and Bulgaria declared a public
holiday on Friday, with the hopes that as people go back to work on Monday, the euro will already be a part of their daily lives.
Ben Hunte, CNN.
(END VIDEOTAPE)
KINKADE: Warren Buffett's 55-year run as CEO of Berkshire Hathaway has come to an end. We'll hear from business leaders and what lessons they have
learned from the legendary investor, next.
(COMMERCIAL BREAK)
[16:51:33]
KINKADE: Well, Chile is creating an ambitious new national park in one of its most remote locations. Cape Froward sits on the very southern tip of
South America. The region is being threatened by not only global warming, but also political opposition. Christopher Ulloa traveled there to show us
why this tiny cape is worth saving.
(BEGIN VIDEOTAPE)
BENJAMIN CACERES, MARINE BIOLOGIST (through translator): Due to global warming, it is receding year after year. In fact, I have been coming here
to this area for about 15 years, and you can clearly see a significant reduction. In fact, that exposed rock wasn't there years ago.
CHRISTOPHER ULLOA, CNN CORRESPONDENT (voice over): Benjamin Caceres is a marine biologist from the Magallanes region of Chile. He has dedicated his
entire life to stand in the flora and fauna of the ends of the earth, and his concern is clear.
CACERES: Glaciers are tremendously important as reservoirs of fresh water, and unfortunately, due to the global climate change crisis, we are losing
them.
ULLOA (voice over): In the middle of a Strait of Magellan, this place considered ancient by the Kawesqar indigenous people, has become a favorite
area for several species threatened by human action.
CACERES: The diversity is tremendous. Species of fish super important to marine mammals such as the humpback whale. It is a feeding ground for
humpback whales, sea lions, Magellanic penguins, and countless other marine species that inhabit these waters.
ULLOA (voice over): Here at Cabo Froward, Caceres and other scientists are seeking to create the world's southernmost national park with more than
120,000 hectares, of which more than 93,000 were donated by the Rewilding Chile foundation to the state, which will help protect emblematic species
such as the huemul, the puma, the Wigeon, and the canquen colorado.
CACERES: The most pressing threat today is increased maritime traffic. Did you know that the Strait of Magellan is a super important international
passage, just like the Panama Canal. And today, it is the most pressing threat, which continues to this day with collisions between these ships and
these whales.
ULLOA (voice over): For Caceres, the situation could become even more complicated once the far-right, Jose Antonio Kast takes office as president
of Chile. during his campaign, he expressed his opposition to environmental guidelines, describing them as merely ideologies.
The Rewilding Chile foundation hopes that the park can be created in the next two years, and that Kast government will not back down from the
initiative.
CACERES: The future national park is a refuge for these species and for the ecosystems found there. With the status of national park, we can help to
conserve these species.
A landscape that, at first glance, appears cold and inhospitable, but leaves no one indifferent.
UNIDENTIFIED MALE (through translator): I thought it was a unique experience that everyone should have at least once in their life.
UNIDENTIFIED FEMALE (through translator): It is so beautiful. I've never seen something like that.
MARTIN TEJEDA, JOURNALIST: As a true Magellanic and love with my land, and able to offer these experiences, bringing people to these places, which is
Patagonia at its finest, is a source of pride.
ULLOA (voice over): For Caceres, the task ahead is decisive.
CACERES: I would like it to remain in balance so that future generations can enjoy it in a responsible way. And see that the populations of all the
individuals here remain as they are today.
[16:55:06]
ULLOA (voice over): A territory that captivated Charles Darwin two centuries ago, and today present experts with a continuing challenge, to
protect the life of the entire local ecosystem.
For CNN, Christopher Ulloa, Magallanes, Chile.
(END VIDEOTAPE)
KINKADE: Well, the Warren Buffett era is officially over at Berkshire Hathaway, his successor, Greg Abel, took the reins today. Buffett served 55
years as Berkshire's CEO. Along the way, he gained a following for his folk wisdom when it comes to business and life. His sayings still resonate with
some CEOs and investors.
(BEGIN VIDEO CLIP)
WARREN BUFFETT, CHAIRMAN, BERKSHIRE HATHAWAY: Love what I do. I get to do exactly what I want to do every day, how I want to do it with people that I
love and that generally like me. You know, doesn't get any better than that.
UNIDENTIFIED MALE: We asked business moguls what they have learned about leadership in business from the Oracle of Omaha, Warren Buffett, as the 95-
year-old steps down from his post as lead of Berkshire Hathaway.
ANDREW CROWELL, VICE CHAIRMAN, WEALTH MANAGEMENT, D.A. DAVIDSON AND CO: The most valuable business insight I learned from Warren Buffett is that when
you're investing, you are not buying a ticker symbol, but a piece of a business.
It's not a poker chip, it's ownership. So, it's important to do your homework, buy at the right price, and have a long-term perspective.
UNIDENTIFIED MALE: In the investment world, his retirement came as a surprise to many.
BUFFETT: I'm glad he'd work until about five years after I die. Actually.
LARRY RESTIERI, CHIEF EXECUTIVE OFFICER, HIGHTOWER ADVISORS: I've learned that excellence is really a discipline. Set a clear direction, stay true to
your principles and execute patiently.
MARCEL ARSENAULT, CHAIRMAN, CHIEF EXECUTIVE OFFICER, REAL CAPITAL SOLUTIONS: Focus on long term value. Forget the headlines. Back the right
teams, because leaders drive lasting value, practice frugality. What truly matters in life can never be bought. And finally, philanthropy. As a fellow
member of the giving pledge, Warren inspired me to think beyond monetary success.
UNIDENTIFIED MALE: Thing that we've learned from him, that everybody should learn, is the patience in long term investing. It's very hard to do. But if
you do it, you'll be well served.
(END VIDEOTAPE)
KINKADE: Well, Wall Street finished mostly higher in its first trading session of the year. The Dow rallied 319 points. The S&P 500 build on its
2025 gains. It added nearly two percent. The NASDAQ finished flat.
Well, let's take a look at the Dow components. The Boeing is at the top, up nearly five percent. Caterpillar is just behind it. It gained around 4-1/2
percent. And the tech sector took a hit. Apple, Amazon, and Microsoft all finished lower.
Well, salesforce saw the worst of the session, down more than four percent.
Well, this is QUEST MEANS BUSINESS. I'm Lynda Kinkade. Do stay with us. "THE LEAD" with Jake Tapper is up next, and I'll be back in about an hour
of the much more news. You are watching CNN.
(COMMERCIAL BREAK)
END
