News Wrap: Swiss investigators believe sparklers started deadly fire inside ski resort bar

Amna Nawaz:

Investigators say they believe sparklers started the deadly fire inside a ski resort bar packed with people ringing in the new year. At least 40 people were killed and more than 100 injured when Le Constellation bar I Crans-Montana went up in flames. Officials say the handheld sparklers were placed on champagne bottles and raised too close to the ceiling, which was coated with sound dampening foam.

Beatrice Pilloud, Valais, Switzerland, Attorney General (through interpreter):

These are birthday candles that you can buy in shops and we all have access to them. As for whether or not they can be used in enclosed or confined spaces, the investigation is ongoing.

Amna Nawaz:

Authorities are also looking into safety measures on site like fire extinguishers and proper escape routes. Meanwhile, a memorial has been set up in town to honor those lost, even as the painstaking task of identifying the victims continues.

Many were in their teens and 20s. For this mother wanting to learn the fate of her 16-year-old son, the weight is agonizing.

Laetitia Brodard-Sitre (through interpreter):

It's unimaginable to tell ourselves that we will live without our children, that our child has burned in a fire on New Year's Eve. We don't know how and when they will be identified. We gave our DNA. Now it's a question of waiting long hours to try to know where our children are.

Amna Nawaz:

The majority of those who were injured are Swiss nationals. Others are from neighboring France and Italy and elsewhere in Europe. Six have yet to be identified.

In Mexico, a 6.5-magnitude earthquake struck outside the resort city of Acapulco today, leaving at least two people dead. The quake struck as President Claudia Sheinbaum was giving her first press briefing of the new year. She called for calm and exited the room with aides and journalists.

Elsewhere, footage shows cars shaking as the tremor struck, while eyewitness video caught parts of buildings falling to the ground. In Acapulco itself, tourists and workers evacuated hotels and found themselves on the streets. Mexican authorities reported at least 500 aftershocks after the initial quake.

Ukrainian President Volodymyr Zelenskyy has named the country's military intelligence chief as his new chief of staff. Zelenskyy says the appointment of General Kyrylo Budanov is meant to emphasize Ukraine's focus on its security, defense and diplomatic efforts. Budanov is one of Ukraine's most recognizable wartime figures and has frequently warned of Russia's long-term intentions towards Ukraine and the region.

Also today, two Russian missiles struck a multistory building in Kharkiv in Northeastern Ukraine. At least 19 people were injured, including a six-month-old baby.

The FBI says it's thwarted a potential New Year's Eve attack in North Carolina, arresting a man who had allegedly pledged loyalty to the Islamic State group; 18-year-old Christian Sturdivant has been charged with attempting to provide material support to a foreign terrorist organization.

Officials say Sturdivant shared his plans to attack a fast-food restaurant and a grocery store with undercover FBI agents. A search of his home uncovered further evidence of his intentions.

Russ Ferguson, U.S. Attorney:

They found hammers and knives hidden under his bed. They found notes where he planned his attack and detailed his attack. He was preparing for jihad and innocent people were going to die, and we are very, very fortunate they did not.

Amna Nawaz:

According to court documents, Sturdivant faces up to 20 years in prison if convicted.

We have an update now on a story we reported last month on tariffs. The Trump administration is now backing off plans to impose steep levies on Italian-made pastas. Italy's Foreign Ministry says the U.S. will now impose tariffs of between 2 and 14 percent on more than a dozen pasta producers. That is a far cry from the 92 percent rate that the U.S. had threatened in October, which would have come on top of the existing 15 percent on most European Union imports.

The Commerce Department says that the lower rates come after Italian exporters had addressed concerns about unfair prices.

Tesla is no longer the world's bestselling electric vehicle maker, as sales declined for the second straight year. The automaker says it delivered 1.64 million vehicles in 2025. That's down 9 percent from 2024. And that lags behind Chinese rival BYD, which sold more than two million vehicles to take the top spot.

Analysts say that Tesla suffered from ongoing consumer backlash over CEO Elon Musk's political activity, plus the expiration of a $7,500 E.V. tax credit. Tesla shares fell around 2.5 percent following the news.

As for the broader markets, stocks on Wall Street posted an uneven start to the new trading year. The Dow Jones industrial average added more than 300 points. The Nasdaq ended just a touch lower, slipping about six points. The S&P 500 posted a modest gain of around 13 points.