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The Story Is with Elex Michaelson
At Least 40 Killed in NYE Fire at Swiss Resort; Zohran Mamdani Sworn in as Mayor of New York; More Rain Expected for California Amid Flooding; California Rain Doesn't Dampen Annual Rose Parade; Ole Miss Stuns Georgia with 39-34 Win in Sugar Bowl; Where Does A.I. Go in 2026? Aired 12-1a ET
Aired January 02, 2026 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ELEX MICHAELSON, CNN ANCHOR: Happy New Year. I'm Elex Michaelson, live in Los Angeles. A brand-new year of THE STORY IS starts right now.
(BEGIN VIDEO CLIP)
MICHAELSON (voice-over): THE STORY IS tragedy in Switzerland. Dozens dead, hundreds injured after a New Year's party turns into a raging inferno.
THE STORY IS big tech in 2026. A look at how A.I. can transform your health this year.
And THE STORY IS everything coming up roses. We'll take you behind the scenes at the Rose Parade and bring you highlights from the Rose Bowl, where Indiana's storybook season continues in a big way.
(END VIDEO CLIP)
ANNOUNCER: Live from Los Angeles, THE STORY IS with Elex Michaelson.
MICHAELSON: We've got a lot of fun to get to in the next two hours, plus a great preview of 2026 on a lot of different levels. But we begin the year with tragedy in Switzerland, where people are desperately wondering how a new year celebration turned into something so awful.
About 40 people were killed, more than 100 injured, when a fire broke out at a ski resort. Video from the scene shows a panicked rush of people trying to escape the Constellation Bar as it goes up in flames.
A warning: some of what you will see and hear is disturbing.
(BEGIN VIDEO CLIP)
(SHOUTING)
(END VIDEO CLIP)
MICHAELSON: Some survivors say they had to use a table to smash a window to escape. One witness said he heard people shouting for help as they raced to get out of that building. (BEGIN VIDEO CLIP)
SAMUEL RAPP, WITNESS (through translator): There were people screaming and then people lying on the ground, probably dead. They had jackets over their faces. Well, that's what I saw. Nothing more.
Then I received videos where people were trying to get out, but they were trampling over each other, so it was hard to get out through the exit. And there were people shouting, saying, Help me, please help us.
(END VIDEO CLIP)
MICHAELSON: Mourners have set up a makeshift altar with flowers and candles near that scene. Many families are still waiting to find out the whereabouts of their loved ones. Authorities say it will take days to identify the victims.
The investigation into the fire still underway. Some witnesses telling CNN affiliate BFM-TV that it may have started from sparklers which were placed in champagne bottles. Officials say it's too early to determine if that's really true.
The president of the Swiss confederation said this was one of the worst tragedies the country has ever experienced. He offered his condolences to the victims and their families.
(BEGIN VIDEO CLIP)
GUY PARMELIN, SWISS FEDERAL PRESIDENT (through translator): Our thoughts are with the families who are in anguish. Some still do not know whether their children have died. Some are in the hospital in difficult conditions.
And we will do everything we can to ensure that everything proceeds as quickly and as effectively as possible. But today, our thoughts and our prayers are truly with all those who have experienced this tragedy.
I would also already like to thank all foreign governments, particularly the neighboring countries, who are showing solidarity and who will work with Switzerland to help care for those who are among the most severely injured.
(END VIDEO CLIP)
MICHAELSON: We're also hearing more from witnesses on the ground. Here's one man describing the horrific scene and what happened afterwards.
(BEGIN VIDEO CLIP)
DOMINIC DUBOIS, WITNESS: Understandably, they don't want civilians getting in and involving and getting in the way. And many -- many were able to help, carrying, I don't want to say corpses. I think everyone who was out and kind of reactive survived. But carrying bodies out of the fire from there, at least a bit further
away. You see there, there's the balcony Meson (ph). That was the first kind of responding place. They did amazing to stay open. It was warm in there. That was what was needed.
As mentioned before, the main, I think, problem was the temperature shock from the heat inside to the cold outside. So, one of the priorities was to get everyone warm.
I mean, I'm talking the curtains of the restaurant was used. And yes, I mean many, many gory scenes. There were many who were very strong, who stayed strong, and who understood that their life was in grave danger, but decided that mentally, it was more important to stay calm.
(END VIDEO CLIP)
[00:05:07]
MICHAELSON: CNN's Nic Robertson is on the scene. He has more on why this fire may have gotten out of control so fast.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Le Constellation Bar is an underground bar.
ROBERTSON (voice-over): And it has wooden paneling on the ceiling, quite narrow staircase to get down. Capacity for several hundred people.
Not clear, according to the prosecutors, how many people were in the bar when the fire started.
But the witnesses have described the fire literally ripping through, from the moment it starts, to within about 10 seconds, balls of flame ripping through.
And what, you know, sort of --
ROBERTSON: -- pyrotechnics, pyrotechnic engineers, if you will, fire services, you know, often describe in these scenarios where --
ROBERTSON (voice-over): -- you have an intense fire. The fire burns out the oxygen. Somebody opens a window or a door to try to break out and get out of there. Air rushes in, which feeds the fire.
And that's perhaps partly why there's this intensity, that it was so ferocious --
ROBERTSON: -- and there were so many casualties and injuries but also sort of how the fire leapt around this enclosed space.
But -- but the --
ROBERTSON (voice-over): -- the prosecutor at the moment is saying, Look, we just do not have those details. There were forensic teams working at the bar just a few hours ago.
Undoubtedly, there's a lot more work to be done there, as well as trying to aid the injured --
ROBERTSON: -- and give solace to some of the families, as well.
(END VIDEOTAPE)
MICHAELSON: Our thanks to Nic Robertson.
Joining us now is Glenn Corbett, an associate professor of fire science at the John Jay College of Criminal Justice. Welcome to THE STORY IS.
GLENN CORBETT, ASSOCIATE PROFESSOR OF FIRE SCIENCE, JOHN JAY COLLEGE OF CRIMINAL JUSTICE: Thank you for having me.
MICHAELSON: You spent a lot of time investigating a fire at a club in Rhode Island back in 2003. A lot of people remember these images. That fire killed 100 people, injured 203. What do you see as the similarities between these two?
CORBETT: Well, there's a lot of similarities here.
No. 1 is the -- what we call interior finish, which is basically the wall and ceiling surfaces of the space. In Rhode Island, there was polyurethane foam on the walls behind the -- where the band was playing. And that played a large role in terms of the fire development, as well as the pyrotechnics that were present in Rhode Island, as well.
So, we see very close similarities between that fire in Rhode Island and this one, in Switzerland, as well as several others around the world over the years.
I mean, these things that happened last night are not unknown to the fire service, certainly. You know, they're regulated by the codes. And that's something that the Swiss government is going to have to take a much closer look at: is how is it that we ended up with a nightclub in a basement, which is even -- to add even more problems to the situation? With, you know, fairly large occupant load, the number of people.
MICHAELSON: Right.
CORBETT: And the combustibility and the use of pyrotechnics.
MICHAELSON: And another thing that, I know, you see as a similarity between all of these, that -- that is maybe a lesson for any of us that maybe go to a club, is if you see a fire, get out. Right? Because time is of the essence.
CORBETT: It is. And, you know, in the case of the Rhode Island, the investigation that the federal -- the U.S. federal government, National Institute of Standards and Technology did, we estimated that the maximum amount of time to get out of that space in Rhode Island was 90 seconds. That was it. If you weren't out in 90 seconds, you didn't survive that fire.
So, people have to realize that fires grow exponentially. This is a big issue with this particular club in this -- in Switzerland that we need to understand more about what was on that ceiling. I -- I suspect it was more than just wood. I think there's something else going on here that they need to look at. But the main thing for, for your listeners is, of course, going to a club. I never go into a nightclub that's below ground. OK? I'll just tell you that. Because we had so many problems over the years.
But I also look for where are the exits. There may -- you know, we don't know how many exits were here. We know there was a stairwell, at least a single stairwell.
And again, our history is replete with, unfortunately, with large crowd crushes that happen when the situation -- when it starts getting very hot. That's when people really start moving.
And so, again, your listeners, if you end up in a situation like that, know where your exits are and move to them quickly. Don't stand and watch the fire, take pictures and things like that. It's time to get out.
MICHAELSON: Yes, that people think it's the time to get that social media video. No, it's time to save your life. And that's an important thing to remember.
CORBETT: Yes.
MICHAELSON: Glenn Corbett, thank you so much for staying up late for us. And thank you for your valuable perspective.
CORBETT: Thank you very much.
MICHAELSON: Now to the big story in politics.
[00:10:00]
(BEGIN VIDEO CLIP)
SEN. BERNIE SANDERS (I-VT): I, Zohran Kwame Mamdani --
ZOHRAN MAMDANI, NEW YORK CITY MAYOR: I, Zohran Kwame Mamdani --
SANDERS: -- do solemnly swear --
MAMDANI: -- do solemnly swear --
SANDERS: -- that I will support the Constitution of the United States --
MAMDANI: -- that I will support the Constitution of the United States --
SANDERS: -- the Constitution of the state of New York --
MAMDANI: -- the Constitution of the state of New York --
SANDERS: -- and the charter of the city of New York --
MAMDANI: -- and the charter of the city of New York --
SANDERS: -- and that I will faithfully discharge the duties --
MAMDANI: -- and that I will faithfully discharge the duties --
SANDERS: -- of the office of the mayor of the city of New York --
MAMDANI: -- of the office of the mayor of the city of New York --
SANDERS: -- according to the best of my ability.
MAMDANI: -- according to the best of my ability.
(END VIDEO CLIP)
MICHAELSON: The 34-year-old Democratic socialist who took the political world by storm, sworn in as the New York mayor.
Zohran Mamdani's inauguration Thursday featured some of the biggest names in the progressive movement, including Congresswoman Alexandria Ocasio-Cortez and -- you see him there -- Vermont Senator Bernie Sanders, who is technically an independent and a Democratic socialist himself.
Mr. Mamdani is the first Muslim, first South Asian mayor of New York, as well as the youngest in over a century.
During his Campaign, he promised bold changes to tackle affordability, and during his speech, he doubled down on that expansive agenda.
(BEGIN VIDEO CLIP)
MAMDANI: The only expectation I seek to reset is that of small expectations.
We may not always succeed, but never will we be accused of lacking the courage to try.
I was elected as a Democratic socialist, and I will govern as a Democratic socialist.
(END VIDEO CLIP)
MICHAELSON: Following his inauguration, the newly sworn-in mayor did not waste time getting to work. The mayor announced new measures aimed at tackling New York's housing crisis.
(BEGIN VIDEO CLIP)
MAMDANI: We will not compromise on housing quality. If your landlord does not responsibly steward your home, city government will step in. These are sweeping measures, but it is just the beginning of a
comprehensive effort to champion the cause of tenants too long ignored and homes too expensive.
(END VIDEO CLIP)
MICHAELSON: Meanwhile, President Trump says he is withdrawing national guard troops from three U.S. cities. Their presence sparked protests like this one in L.A. last year.
In a social media post, the president said that he was removing troops from Chicago, Portland, and L.A. He left open the possibility of future deployments while claiming that he was withdrawing the troops because crime was down, not because the court is forcing him to.
This comes after the U.S. Supreme Court rejected the president's request to deploy troops to Chicago to help protect ICE agents that are carrying out the administration's immigration crackdown.
The arrival of the new year brought a grim development for millions of Americans. Enhanced premium subsidies to the Affordable Care Act came to an end. Those are those Obamacare subsidies.
The House is set to vote later this month on a Democratic plan that would extend those subsidies for three years, but the deal faces significant hurdles in the Senate.
In the meantime, many people are being forced to either pay a lot more for health insurance premiums or simply go without coverage. About 20 million Americans impacted by this.
Parts of Southern California got a New Year's Day soaking. More storms expected to bring more flooding in the next few days. Details in just a few minutes.
Plus, the breaking news. What a game in college football. The Sugar Bowl just ended. Ole Miss taking down Georgia in the last seconds of that game.
Plus, a dominant performance in the Rose Bowl. Arash Markazi with us live in studio to talk about a big day for college pig [SIC].
(COMMERCIAL BREAK)
[00:17:56]
MICHAELSON: Now that it's officially 2026, the eyes of the political world are focused on that building right there. Congress, the midterm elections likely the big story of the year.
Democrats desperate to win back the House. Both parties are working to reshape districts alongside the country to benefit their candidates.
Here in California, a panel of federal judges still deliberating on whether the state's newly drawn congressional district maps that were passed by Prop 50 violate the U.S. Constitution. But if they stay -- and they're likely expected to -- that means that
some districts that have been Republican will now likely be Democrat, including the district our next guest is running in.
His name is Ammar Campa-Najjar. He is challenging Republican Congressman Darrell Issa, who has been in Congress for decades. He's a former Obama administration official and an officer in the U.S. Navy.
Ammar, welcome to THE STORY IS for the first time.
AMMAR CAMPA-NAJJAR (D), CALIFORNIA CONGRESSIONAL CANDIDATE: Thanks for having me. Happy New Year and thanks for getting my name right, by the way.
MICHAELSON: Thank you. It's a guy with the name Elex. I'm used to people mispronouncing mine.
So, what is the -- would you say is the one issue going into 2026 that is the biggest difference between Democrats and Republicans in terms of the House?
CAMPA-NAJJAR: Well, that just happened today, January 1. The tax credits for millions of Americans across our country, the premiums the ACA are going to go up, right? The tax credits are going to be gone as of today, and people's premiums are going to go up by two, three, four times.
And that means 1.7 million Californians, including members of my district, are not going to be able to afford healthcare. They're not going to have the coverage they need to take care of themselves and their families.
And right now, when people are affording -- can't afford the price of not just healthcare, but housing, groceries, electricity, you name it, that is an added pressure and stress that people don't need.
And my opponent, Congressman Darrell Issa, has rubber-stamped every single unpopular policy from this administration, whether it's the "Big Ugly Bill" that gave tax breaks to billionaires who don't need it and aren't asking for it.
[00:20:03]
Or getting rid of Medicaid for rural hospitals that need it, like in my district. Or these ACA cuts, or the tariffs, or the ICE raids that's wreaking havoc in our communities. I mean, every single one of these things are unpopular.
And if you had to pick one issue, it would be affordability, beginning and ending with the skyrocketing cost of healthcare that we're about to see this coming year.
MICHAELSON: You mentioned Darrell Issa. He's become a national figure over the years. We know that he ran Oversight Committee before. He's been in Congress for a very long time. He flirted with the idea of running for Congress from Texas, because his district is now more Democrat than it is Republican.
You said recently you think he's going to retire. You mean retire before he even gets to the primary?
CAMPA-NAJJAR: I think he might, yes, retire and get a cabinet position. You know, in 2018, he retired before. You probably covered that race. I remember it. And he retired and was looking for a cabinet position to be the trade rep for President Trump's administration.
MICHAELSON: When he thought he was going to lose.
CAMPA-NAJJAR: Correct. And so, here we are again. Past is prolog. We have a poll that came out that has me beating him from between 4 to 8 points. He sees the writing on the wall.
And if he ends up staying in this race, we're going to prosecute the case that Darrell Issa was trying to flee California; didn't care about the constituents; and was thinking about leaving to Texas because he doesn't think that being in Congress is about serving constituents. It's about how constituents can best serve him.
And, you know, the -- the 20 years of time he's been in Congress, where he's been selling his votes to the highest bidder -- big oil, big pharma, the big gun lobby. That's why his votes are the way that they are. So --
MICHAELSON: But it -- right now, it's not -- right now, it's not a two-man race. I mean, there are other Democrats running in the primary against you, and you've lost to Darrell Issa twice.
CAMPA-NAJJAR: Right.
MICHAELSON: So, what do you say to some of your opponents who say you already had your chance. You lost. Let's go with somebody fresh who might give a better chance of winning in November.
CAMPA-NAJJAR: Yes. You know, I've run before. I ran once against Darrell Issa. I outperformed the top of the ticket. I got more votes than Gavin Newsom, who I admire. Joe Biden, Adam Schiff in this district.
It was a Trump 15 district. Now it's a Kamala plus three district. I've been able to show that I could outperform the top of the ticket.
And it's a district that's 30 percent Latino. It's a heavy veteran population. I'm a naval officer, as you said. It's a Navy town. San Diego County and Riverside County. And I think that's the kind of tested leadership and experience that we need.
We've raised nearly $1 million from 35,000 individual donors. I don't take any corporate money. That's the kind of people power movement that we need.
I've been chipping away at this district for almost a decade. I ran against Duncan Hunte before that, every single time outperforming the Democratic ticket. And I think that's the kind of leadership that we need to take on
Darrell Issa.
You'll remember in 2016, Darrell Issa ran for Congress in a district that Trump -- that Hillary won by ten points.
MICHAELSON: Yes.
CAMPA-NAJJAR: And he still won. It's not just any Democrat can beat him. You have to have someone who's been tested who can punch above their weight, outperform the top of the ticket, and nobody else has been able to do that except for me in this district.
And we have the support of members of Congress like Mike Levin, Scott Peters, and so many others who know what it's like to run tough races and are fully behind the campaign.
MICHAELSON: And those are the other key Democrats in that region of San Diego, or at least some of them.
One thing that would be different about you if you got to Congress, you've actually lived in Gaza, which is not true of any member of Congress.
From a policy perspective, how will having that worldview, having that experience impact you as a member of Congress. And what would you do differently than maybe some current members, including Democrats, on that issue?
CAMPA-NAJJAR: You're right. I am the -- probably the first United States naval officer who also lived in Gaza. I was born here in San Diego. I lived in Gaza between 1997 to 2001 during times of peace and wartime.
So, I've seen and heard the sights of that conflict.
And what I bring to this situation, I think, is a lived experience, a credibility of having seen this conflict up close and personal. And, you know, my heart breaks for those who were killed and massacred on October 7th by Hamas.
My heart also breaks for the atrocities that we've seen happen in those last two years, where innocent Palestinian children and noncombatants and women who have lost their lives during this conflict.
And I think it behooves all of us to recognize that the fates and futures of Palestinians and Israelis are inextricably bound, and we have to have moral consistency on this. I support a two-state solution, and I support the 20-point plan that the president's laid out.
Now, I hope that it will be enforced, that we can demilitarize Hamas. We can have an international security force there to police the area to make sure that violence doesn't erupt again, and that we can have reforms in the Palestinian Authority and kind of not have these forever wars that are perpetuating in the Middle East.
MICHAELSON: Yes.
CAMPA-NAJJAR: That's where America's (ph) stake is really important.
And -- and more important than the wars that we wage abroad, Elex, it's the -- it's the battles that we have here at home. It's affordability, the cost of living, housing, healthcare.
[00:25:08]
And that's not just a pivot. I think that the investments that we're making --
MICHAELSON: Sure.
CAMPA-NAJJAR: -- on conflicts abroad take away from our prosperity here at home, and we need to have strong economic security at home.
And I think America leads best not just when we're leading by the example of our power, but the power of our example. And the way that we build this country at home speaks volumes to the people abroad.
MICHAELSON: Well, that's a -- that's like a Barack Obama line. And it looks like we've got Barack Obama poster of you behind you. So, it's quite the -- quite the look.
CAMPA-NAJJAR: I'm good.
MICHAELSON: Ammar Campa-Najjar --
CAMPA-NAJJAR: And the same agenda (ph).
MICHAELSON: Yes. Thank you very much. We appreciate you coming on and sharing your perspective. Happy New Year to you and yours.
CAMPA-NAJJAR: Likewise. Thank you very much.
MICHAELSON: Speaking of new year, THE STORY IS the weather. In the coming hours, Southern California will get a short break from days of heavy rain.
This is what it looked like near where Ammar Campa-Najjar lives in San Diego. Widespread flooding in that area. Two interstates swamped, many cars submerged under high water in the streets.
Another line of storms set to impact that waterlogged region starting late Friday. More systems could hit the coast by early next week.
Teams from the San Diego Fire Department had to rescue people trapped in their cars by floodwaters.
All the rain dampening spirits for folks across Southern California. CNN meteorologist Derek van Dam has our forecast and the forecast for the rest of the country.
(BEGIN VIDEOTAPE)
DEREK VAN DAM, CNN METEOROLOGIST: All week we've been watching this upper-level low pressure system move into California. It brought the heavy rain to Southern California, but now it's starting to move on. And we'll get this brief lull in the precipitation before another round of rainfall moves in late on Friday and into the day on Saturday.
So, putting this forecast radar into motion, you can see this second kind of slug of moisture first impacting Northern and Central California by Friday evening local time.
And then we'll start to see some of that rain move into Southern California, into some of those harder impacted areas from not only Christmas week storms, but also the most recent storm throughout the course of the day on New Year's and New Year's Eve.
So, all in all, only another inch or so of rain expected through the course of the early weekend across Southern California. Heavier amounts where it's more persistent across Northern and Central California, and of course, several inches of snow for the higher elevations of the Sierra Nevada mountain range.
Some of that moisture will spill over across the Rockies into Colorado. Much-needed snowfall for them.
Impulsive precipitation moves through the upper New England region, and that could bring in some additional lake enhancement of snowfall downwind of Lake Erie and Lake Ontario; maybe up to a foot in some of those favorite areas.
Across the Southeast, in and around Birmingham, as well as Atlanta, a quick moving storm system will bring rainfall to that area. But behind it, we're going to see temperatures start to rebound to above average for many locations over the Eastern half of the country.
Watch this. We've been locked in the cold air across the Northeast. Look at how the reds start to get welcomed into this forecast. Things are looking warmer as we head into the first week of 2026.
Back to you.
MICHAELSON: Derek, thank you.
Rain clearly a big story at the 137th Rose Parade here in Southern California. It was a wet one, which is highly, highly unusual.
For the first time ever this year -- this is also unusual. CNN carried the two-hour parade live, and I was honored to host it alongside CNN Sport's Coy Wire.
Here are some of our favorite moments from this year's celebration of "The Magic of Teamwork."
(BEGIN VIDEOTAPE) COY WIRE, CNN SPORT: This started way back in 1890. This year's parade begins in just seconds. We have 39 floats. We have 17 equestrian units, 19 marching bands. Yes, please.
MICHAELSON: And by the way, it has only rained on the Rose Parade twice now in the last 70 years, including this one. So, it's going to be interesting to see what happens with all that rain.
We are listening to the theme song of the Marine Corps as we celebrate the 250th anniversary of America, our birthday this year.
WIRE: With grand marshal of the 2026 Pasadena Tournament of Roses, Magic Johnson.
MICHAELSON: OK, OK. They put the top up on the car.
Look at -- look at what these guys are wearing, with the -- with the bubbles they've got going. I mean, this thing is really festive.
And Trader Joe's is fun. I mean, that's part of what makes it so fun to shop there.
WIRE: I feel like they're going to work after this, because, like, when you walk into Trader Joe's, it is fun.
MICHAELSON: Yes, yes.
WIRE: As a family with two young daughters.
MICHAELSON: Whoa.
WIRE: Oh, look at this. Pop that bottle, baby. Happy 2026. Happy New Year.
Two-hundred fifty members, largest ever Japanese band in the Rose Parade. The cheerleading team, they are one of the most successful teams in Japan, having won 42 national level titles.
[00:30:04]
Let's listen in.
(MUSIC)
MICHAELSON: It's time for my favorite float, "Star Trek's" 60th anniversary. They're celebrating it with the Space for Everybody flight [SIC] -- float, which we are looking at, which includes the Starship Enterprise right there.
WIRE: Wow.
MICHAELSON: And it really is a wave. Do you think you have it down? Have you gotten it down? It's amazing, the people that sort of --
WIRE: Well, see, you've got it all wrong. I hear it's elbow first and then hand. MICHAELSON: OK.
WIRE: See, you're going hand. It's not this.
MICHAELSON: OK.
WIRE: It's elbow first. Why do I know this? Because I played in the Rose Bowl in 2000.
MICHAELSON: They taught -- they teach you, seriously?
WIRE: We wanted to do the wave. It's elbow first. Pretty simple. We'll work on it, buddy.
MICHAELSON: The things you learn.
WIRE: He's coachable.
MICHAELSON: The Go Bowling float is rolling together as one. And you see the pins and the balls are moving.
WIRE: They spared no expense on this float --
MICHAELSON: There you go.
WIRE: -- put in 50,000 flowers.
MICHAELSON: But really, this is a celebration of how music transforms lives. Music, the universal language, which helps so many people in math and science and everything else.
You can get your kids to be a part of a band program. It can change their life. And I love what's going on here.
WIRE: This is one of the most extensive floral displays. The Rose Parade has ever seen --
MICHAELSON: Wow.
WIRE: -- in its 137 years. Incredible stuff. Thirty-foot-tall, bald eagles.
MICHAELSON: And we've got a waterfall, which was supposed to be there. That's not just the overflow of water that we have seen.
Sometimes rain is good luck. And hopefully, this year that's the case.
WIRE: That's the case. And the "Magic in Teamwork," of course, was the Rose Parade's theme this year. And I think you're right. We need that now more than ever.
(END VIDEOTAPE)
MICHAELSON: Yes, we do. It was great being a teammate with Coy, by the way. I don't think I've -- I've still gotten the wave down, but I'm going to work on that for next year. A big shout-out to our entire CNN team for making the investment, for
being there at all, for making it all happen in the rain. And a big shout-out to everybody who made the Rose Parade possible. Proof that the show must go on. And it was quite a show today.
All right. Well, after the Rose Parade, of course, was the Rose Bowl game. That was a blowout.
The Sugar Bowl was not. Arash Markazi, founder of "The Sports Tribune," is live here in studio to talk about both of them. He's just back from Pasadena. He was at the Rose Bowl. We'll talk about that and more, next.
(COMMERCIAL BREAK)
[00:37:03]
MICHAELSON: THE STORY IS sports, and New Year's Day means bowl games for college football fans. And there were plenty of surprises and thrilling moments on Thursday.
Let's start with the Sugar Bowl, which just ended, came down to the wire, and just wrapped up. This is in New Orleans.
The University of Mississippi pulling off the upset victory, stunning the University of Georgia in the final seconds of the game.
Ole Miss actually came back in the fourth quarter in dramatic fashion to take the lead. Georgia. So, this is when we see them coming back there, taking the lead.
Georgia tied the score up with less than a minute remaining with a field goal. But then Ole Miss scored a field goal of their own, capped it all off with a safety. The final score 39-to-34. Ole Miss advances to the semifinals.
Meanwhile, fifth-ranked Oregon shut out No. 4 Texas Tech in the Orange Bowl in Miami on New Year's Day. Oregon's defensive line dominated the Texas Tech defense -- offense, I should say. It carried the day. Final score there, Oregon, 23 to nothing.
With that decisive victory, the Oregon Ducks advanced to the semifinals, where they will take on the top-seeded Indiana Hoosiers at the Peach Bowl on January 9.
And let's talk about Indiana. Indiana punching its ticket to the semifinals on Thursday, trouncing Alabama at the Rose Bowl, 38 to 3. The Tide did not roll today.
The Hoosiers winning the Rose Bowl for the first time in school history. Indiana's quarterback, Fernando Mendoza, fresh off winning the Heisman, passed for 192 yards.
Before this, Indiana had not won any bowl game since the 1991 Copper Bowl. The undefeated Hoosiers, now just two wins away from what would be the school's first ever national championship. Joining me now, founder and CEO of "The Sporting Tribune," Arash
Markazi. Arash, welcome back.
ARASH MARKAZI, FOUNDER/CEO, "THE SPORTING TRIBUNE": Good to be back.
MICHAELSON: You were just at the Rose Bowl. We'll talk about that in a little bit.
Let's start, though, with the Sugar Bowl, which just ended. We watched the end of it together. Very exciting. And what a win for Ole Miss, right? Who would have expected this?
MARKAZI: Not lane Kiffin. I mean, listen, while he was tweeting and showing, apparently, his family was at the game, he was not at the game.
I mean, the chip on the shoulder of these kids is really such a story and such a movie.
MICHAELSON: So, let's tell that. So, back up on this. So, Lane Kiffin --
MARKAZI: Yes.
MICHAELSON: -- was the coach of Ole Miss.
MARKAZI: He was.
MICHAELSON: He recruited all of these guys.
MARKAZI: This was his team.
MICHAELSON: This is his team.
MARKAZI: That's right.
MICHAELSON: And then, right before they go to the playoffs, he goes to LSU. And we see this video here.
MARKAZI: There we go.
MICHAELSON: Him holding up the jersey. He said, I wanted to keep coaching Ole Miss until the end. Ole Miss said, No, thanks. We're going to keep going without you. And now they're advancing.
MARKAZI: I mean, the reason he went to Louisiana State, partially because of the money, but the money was about the same. But why do you go there? To give yourself the best chance to win a national championship.
[00:40:04]
So, you're effectively telling these kids who you recruited and this coaching staff who you brought in, "You're good. You're a playoff team. But I don't think you're a championship team. I've got to go to Louisiana." So, the fact that not -- the fact that Ole Miss had this moment in
Louisiana -- in Louisiana -- is such a story.
And -- and again, Lane Kiffin decided not to go. There was a -- there was a report that he might go. He was at a women's basketball game in Louisiana, but his family was there.
Again, this much -- this is a surreal experience for Lane Kiffin. This is his staff. The head coach right now is his defensive coordinator. This is his team.
So, if his team does what he couldn't do -- and there was one fan who had a perfect sign: "Ole Miss, one playoff win, Lane Kiffin, zero." Actually, they've got two now. They've got two playoff wins now.
MICHAELSON: That's crazy.
Meanwhile, let's talk about Indiana, because in order to win the national championship, the -- Ole Miss would have to, potentially, defeat Indiana.
MARKAZI: Yes.
MICHAELSON: The Rose Bowl domination.
MARKAZI: Domination. And here's the thing. I mean, what an amazing story. This is a Disney movie playing out in real life.
What Curt Cignetti is done with Indiana -- and you touched on it. This team has not done anything, Elex. And this has not been a slow build.
You go back to a couple of years ago, two years ago. So, not a year ago. That's when the turnaround began. This is one of the worst teams in college football.
MICHAELSON: Yes.
MARKAZI: This is a basketball school. They have never cared about --
MICHAELSON: The losingest team in all of college football at that point.
MARKAZI: They didn't really -- like, they had a college football program, because they had to have one. They've had a college football team there for 126 years.
But what they've done is they've built a powerhouse. They have the Heisman Trophy winner. And what you said, they just dominated the -- the class of college football.
When you talk about, like, what is the most storied franchise or what is the most storied school? It's the Alabama Crimson Tide. And that game was not close.
MICHAELSON: And talk to us about what it was like being there, because walking around at the Rose Bowl and Rose Parade -- MARKAZI: Yes.
MICHAELSON: -- it's a whole lot of Indiana people and not a lot of Alabama people.
MARKAZI: And again, you saw these folks in Pasadena all day today, all day last night. This is a moment -- they could not have dreamed of being at the Rose Bowl.
MICHAELSON: This is the biggest game in the history of their school.
MARKAZI: I mean --
MICHAELSON: As compared to Alabama, it's like Tuesday. Right?
MARKAZI: You just touched on it. Like, they've -- they've never won the Rose Bowl.
MICHAELSON: Right.
MARKAZI: So, for just the fact that they were there. The old school, like I saw so many alumni there, just emotional just being there. And so, not only being there, but to blow out that game and win it and advance. Incredible.
MICHAELSON: So, you said it was about 90-10.
MARKAZI: Ninety-ten. Again --
MICHAELSON: Indiana fans.
MARKAZI: I've been to some lopsided events. This was all Indiana fans, just so appreciative to be there.
MICHAELSON: Wow. And the folks from Alabama didn't have a whole lot to cheer for, if they made the -- if they made the trip.
OK, so the other big story in football this year is the Super Bowl is right here in California.
MARKAZI: That's right.
MICHAELSON: Levi's Stadium in the Bay Area, Santa Clara. Who do you think right now has the best chance of going?
MARKAZI: So, here's the thing. People are going to think I'm crazy, but I was in Seattle at that game. Seahawks, Rams. And that season flipped.
I still like the Rams. And again, if you're -- if you're -- if you like to place a wager. Listen, they have a great offense. They have a great defense. They're going through a little bit of a tough time right now.
But this is why this season is one of the best we've had. No Patrick Mahomes, no Travis Kelce, no Kansas City Chiefs. We're going to get a different Super Bowl than we've had in quite some time.
MICHAELSON: Yes. So, you like the Denver Broncos in the AFC?
MARKAZI: I like the Broncos and the Rams. Yes. I'm not going to skew. I'm not -- you know, this has been such a crazy season that week to week, you can go Seahawks. You can go Patriots.
But that's -- that's -- that's the beauty of it. People probably at home are thinking I'm crazy picking the Rams. I'm telling you, things can flip very quickly this season.
MICHAELSON: Well, the thing about the Rams is every single game they've lost has been like this close.
MARKAZI: A field goal. Yes.
MICHAELSON: So, if they make those few tinkers --
MARKAZI: A hundred percent.
MICHAELSON: -- they could be the team. Who knows? It's going to be fun to watch. And hopefully, we'll be at the Super Bowl with you.
MARKAZI: That will be fun. Let's do it.
MICHAELSON: Let's put that into existence.
Arash, thanks for coming in.
MARKAZI: Thanks for having me.
MICHAELSON: Happy New Year to you and your family.
MARKAZI: Thank you.
MICHAELSON: We'll be right back. Coming up, a look at tech in 2026. What's the big story that you've got to know about? How is your life about to change? Stay with us.
(COMMERCIAL BREAK)
[00:48:30]
MICHAELSON: THE STORY IS tech. 2025 was all about A.I. What will the big story in 2026 be all about?
My next guest has been watching all this for years. She is the author of "No Filter: The Inside Story of Instagram." Sarah Frier is also the big tech team leader at Bloomberg, and she joins me live right now from the Bay Area.
Sarah, welcome to THE STORY IS for the first time.
SARAH FRIER, BLOOMBERG: Thanks for having me.
MICHAELSON: So, if 2025 was all about A.I. and companies investing in it, what is 2026 all about?
FRIER: Well, you heard about the investing this year, for sure. The companies were making really grand proclamations about how much they were going to spend.
You have OpenAI talking about more than a trillion over time. You have Meta talking about 600 billion. This -- these are really just unfathomable numbers.
And I think in 2026, we're going to start to see a lot of those commitments come into play and see if that money is actually going where -- where people say it's going to go, if it's actually going to -- if they're actually going to be able to spend at the rate that they're -- they're saying they will.
And what is actually the return on investment here for all of this incredible build-out? What will change about the way we do business, the way we go about our lives? It -- it really is going to be a year of testing whether A.I. will grow as quickly as a lot of investors hope that it will.
[00:50:06]
MICHAELSON: And one of the images from 2025 that I'll never forget was reporting from the inauguration of President Trump. And these were the folks behind him. All of the biggest leaders in tech, who all had given to the Trump inaugural committee. And all have had a pretty good relationship with him over the last year, shown their support for him.
I mean, this year, it's like kind of --
FRIER: And that's been a -- a very dramatic shift from --
MICHAELSON: Right.
FRIER: -- from prior years of the Biden administration, where there was a bit of an adversarial relationship. And even in the first Trump administration, which started the tech-lash.
Now we see them working together. And it's really all -- all about A.I. The reason that they need to work closely with the administration is because the build-out is going to require states, local communities to get on board with data centers in their -- in their regions. Energy is going to be required to power them. Water.
So, it's going to require a lot more coordination with government.
They're also working with the Trump administration. We saw a lot of executives on the road with him in Europe, trying to convince European regulators to back -- to back down on their -- their A.I. plans to regulate.
So, I think whether those alliances will stay intact in 2026 is a big question. And also, what will those executives gain from the -- the friendly relationship?
MICHAELSON: Let's talk about how A.I. could change all of our lives in the next year.
You say search is an especially interesting place. Thinking of like Google, like when you search for information online.
FRIER: It's really going to be the year, I think, where more of the new information on the Internet is going to be created by A.I. than it is by regular human people.
So, we're all going to have to become much savvier consumers of what we see on the Internet. And A.I. is going to get a lot better at mimicking human content. And humans are going to be using A.I. to generate their content. So, it's going to become very messy, very fast. It already is.
If any of you try to look for, you know, recipes for what to cook for the holidays, you may have come across recipes that were created by A.I. that don't work. Right?
So, we are all going to have to navigate this -- this tricky -- this tricky situation where we're getting information in a way that we are not used to. And we have to fact check it, and we have to really do a lot of trial and error to find out what works and what doesn't --
MICHAELSON: Yes.
FRIER: -- when we're trying to get advice from chatbots and from search.
MICHAELSON: Sometimes, sticking with grandmother's handwritten recipes is maybe the way to go.
One potential positive, though, you say, is A.I. in medicine could speed up potential cures, right?
FRIER: Well, I think it's really interesting to see how the combination of, not just in medicine, but broadly, A.I. and robotics. The fact that you can see so much of the -- the data as it comes in and then iterate from there.
And that could lead to faster drug discovery. That could lead to better lab procedures.
And then A.I. and robotics, more broadly. You know, I'm here in San Francisco. Waymos are everywhere, right? Self-driving cars are really going to proliferate this year. We're going to see that become more -- more normal for people. The way that they take a Lyft or Uber, they might take a self-driving car.
So, it's -- that's, I think, going to be the most tangible -- tangible way that -- that everyday life might change.
But then, behind the scenes, the way that robotics and A.I. together are changing how industrial processes work is going to be very interesting.
MICHAELSON: And one of the limits on Waymo so far has been not really being able to go on the freeway in most places, which means you can't really take it everywhere. That changes this year.
FRIER: Starting soon in the Bay -- yes, starting in the Bay Area.
MICHAELSON: And that is a game changer, because if you can take your Waymo everywhere, then a lot of people may not see a need to ever use an Uber or a taxi. And that could change the way that they think about commuting.
Sarah Frier, you're great. Hope to talk to you a lot more in the new year. Thank you very much.
You can check out her work at Bloomberg. Thanks so much.
FRIER: Thanks for having me.
MICHAELSON: Coming up, from humble roots and no formal training to revolutionizing fashion in the '90s and dressing some of the world's biggest hip-hop stars. In our next hour, we're joined by the man known as the Godfather of Urban Fashion. He's here live.
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[00:59:06]
MICHAELSON: After 40 years, MTV's music-only channels, now a thing of the past.
(BEGIN VIDEO CLIP)
THE BUGGLES, BAND (singing): Video killed the radio star. Video killed the radio star.
(END VIDEO CLIP)
MICHAELSON: And it ended just as it began, with the music video. "Video Killed the Radio Star" by The Buggles.
MTV channels around the world, from the U.K., to Ireland, France, Australia, and Brazil, all went dark on Thursday.
The music channel is still streaming in the U.S., though popular shows like "Catfish" and "Ridiculousness" were recently canceled.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (singing): But when I'm having my love --
(END VIDEO CLIP)
MICHAELSON: A film featuring Betty Boop from 1930 has now entered the public domain, which means that it is available for use and adaptation by anyone for free.
Here's the cartoon character in her first appearance in the six-minute short "Dizzy Dishes."
That version of Betty is among thousands of creations whose copyrights expired on January 1. They include the first four "Nancy Drew".
