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Five People Dead in a Mass Shooting in Texas; First Republic Bank in Auction to Avert Banking Crisis; Democrats and Republicans Argue over Debt Crisis as Potential Default Looms; First Batch of Repatriated Americans from Sudan Arrives in Jeddah; Sudan Armed Forces and ESF Have Agreed to Another Possible Ceasefire; U.S. States Bordering Mexico Bracing for a Possible Surge of Migrants; Plans for National Festivities in Cuba Change Due to Fuel Crisis; SpaceX Launches World' Highest Capacity Satellite and the Largest All- Electric Satellite; Ceremony for Britain's King Charles Coronation Will Soon Take Place. Aired 3-4a ET

Aired May 01, 2023 - 03:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[03:00:00]

(COMMERCIAL BREAK)

ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us here in the United States and all around the world. I'm Rosemary Church.

Just ahead on "CNN Newsroom," investigators announced a reward for information leading to the arrest of the mass shooting suspect in Texas. Details plus here from the family of the victims left behind.

Regulators weigh bids for First Republic as they try to avoid what would be the second biggest bank failure in U.S. history.

Plus, the crisis in Sudan. The first U.S. evacuation ship is expected to arrive at the Saudi Arabian port very soon. And a live report on the fighting and dire humanitarian crisis in and around Khartoum.

UNKNOWN (voice-over): Live from CNN Center, this is "CNN Newsroom" with Rosemary Church.

CHURCH: Thanks for being with us. Well, a small Texas town is in mourning and on edge after a deadly shooting, in which five people were killed. This man lost his wife, and nine-year-old son in the shooting. Meanwhile, more than 200 officers from multiple law enforcement agencies are involved in the manhunt for the suspected shooter. And, there is also an $80,000 reward being offered for any information that could lead to his arrest.

Authorities have identified the suspect as 38-year-old Francisco Oropeza, a Mexican national. An FBI official told reporters Sunday, they had, quote, zero leads on the suspect's whereabouts. Officials say tracking dogs had initially picked up the suspect's scent, but now authorities don't know if he's still in the area.

CNN Law Enforcement contributor, Steve Moore, says the first 24 hours are critical during a manhunt.

(BEGIN VIDEO CLIP)

STEVE MOORE, CNN LAW ENFORCEMENT CONTRIBUTOR: The first 24 are very important when you've got a fugitive, because you can actually time how far they could walk, whether or not they could've gotten to another vehicle. But after 24 hours, it actually does grow a little bit cold. And the concern is, obviously, that he needs food, water, transportation, money, and he is obviously somebody who will do anything to get what he wants.

(END VIDEO CLIP)

CHURCH: The Honduran Consulate in Houston is offering support to the families of the victims, whose bodies will be repatriated to their nation of Honduras.

CNN's Rafael Romo has more from family members of the victims.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN CORRESPONDENT (voice-over): Francier Guzman says her daughter had a dream. Sonia Guzman left her native Honduras for the United States in 2014, hoping to make enough money to build a house for her mother and her siblings because they did not have a home they could call their own.

We didn't have a house, we didn't have a place to live, we would go from one place to another, and she did not want that for her siblings, she said.

The 29-year-old Honduran immigrant is one of the five people murdered Friday night, in Cleveland Texas, in what authorities described as almost execution style. Everybody was shot above the neck, including Sonia's nine-year-old son, identified as Daniel Enrique Laso-Guzman.

SHERIFF GREG CAPERS, SAN JACINTO COUNTY, TEXAS: I don't care if he was here legally, I don't care if he was here illegally. He was in my county, five people died in my county, and that is where my heart is.

ROMO (voice-over): Herman Guzman, the boy's uncle and his mother's brother says, everybody living at the house where the shooting happened were members of the same extended family from Honduras.

We truly get along very well as siblings, and we also truly got along very well as all of them as relatives, he said. I have no words to tell their parents and siblings about what happened, because this is very painful.

Sonia Guzman's dream came true. With the money that she made in the United States, she was able to help her mother buy a home in the town of La Mision located in the Honduran province of Comayagua.

She never left me alone, it was very difficult to know that I won't hear her voice anymore, her mother says. She left full of excitement. And now, I'm just hoping that she will come back even if it is in a coffin, so that I can say goodbye.

[03:55:03]

(on-camera): In the middle of their pain, the families asking for help to be able to transport the remains of their loved ones back to their native Honduras. Sonia Guzman's mother told CNN that all she wants now is to be able to give their daughter and grandson a proper burial in the land where they were born.

Rafael Romo, CNN, Atlanta.

(END VIDEOTAPE)

CHURCH: The fate of First Republic Bank could be decided before U.S. markets open for the trading week today. Sources tell CNN that federal regulators held an auction for the ailing bank on Sunday. "The Wall Street Journal" reports J.P. Morgan Chase and PNC are among the top banks that submitted a bid. Authorities are unlikely to submit the decision of that auction in the coming hours.

CNN's Matt Egan has more.

(BEGIN VIDEOTAPE)

MATT EGAN, CNN REPORTER: U.S. officials and investors are hoping that a white knight comes to the rescue of First Republic Bank. The FDIC held an auction over the weekend trying to entice big banks to acquire this ailing regional bank, according to a person familiar with the matter.

But we don't know yet the results of that action, nor which banks actually place bids to buy First Republic. Now, unlike Silicon Valley Bank, which imploded almost out of nowhere last month, First Republic Bank has been really teetering for weeks.

Share prices down by 97 percent since early March, traded above $122 on March 1, now sitting below $4. And this is not some tiny community bank. It is the 12th largest commercial bank in the U.S. It was sitting on $233 billion of assets, as of the end of March. That means that, if the FDIC ends up seizing control of First Republic, this would be the second biggest bank failure in American history.

Now, First Republic is based in San Francisco, it caters to wealthy clients. It has branches in Beverly Hills, and Palm Beach, Greenwich, Connecticut. It even has a branch right across the street from our offices here in Manhattan.

The problem though is that two-thirds of its deposits were uninsured, as of the end of last year. And we know uninsured deposits, they fled banks after the Silicon Valley Bank collapsed last month. First Republic says that 41 percent of its deposits left the bank in the first quarter alone. That translates to a staggering loss of $72 billion in deposits. And that's despite the influx -- the injection of $30 billion of deposits from big banks just last month.

Now, the question is whether big banks are going to come to the rescue with an acquisition here, and whether U.S. officials can stop this banking crisis before it spreads elsewhere? Back to you.

(END VIDEOTAPE)

CHURCH: With the economic doomsday clock ticking toward a potential U.S. government default, Republicans and Democrats argued some more on Sunday, but didn't make any progress towards resolving the debt ceiling crisis.

The Republican-controlled House last week passed a bill to enable the U.S. to continue borrowing, so it could pay its bills. But it includes deep program cuts. President Biden has made clear he won't approve. Independent Senator Bernie Sanders told CNN on Sunday, Democrats are willing to discuss budget cuts, but the Republicans first have to pay for programs Congress has already passed.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (I-VT): The President is right. What we need is a clean debt ceiling bill. You pay your bills. And then, you can sit down and negotiate what a sensible budget is. While we can start negotiating tomorrow, but you cannot be holding the American people the world's economy hostage. What the Republicans I've got to say is, absolutely, we are going to make sure that we pay our debts.

(END VIDEO CLIP)

CHURCH: But Republicans are having none of that. They are demanding President Biden sit down and negotiate.

And CNN's Alayna Treene explains from Washington, it is not clear how or when there may be a breakthrough.

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ALAYNA TREENE, CNN REPORTER: House Speaker Kevin McCarthy accomplished a major feat this week in pushing that bill to the house. But he has a much bigger challenge ahead in navigating how to avoid a default. And it doesn't really look like this bill has changed the dynamics here in Washington.

The White House and Democrats are slamming this bill as an unserious proposal that is dead on arrival in the Senate. They're also digging in on the refusal to negotiate any spending cuts that are tied to the debt ceiling. And that really leaves Congress stuck in a dangerous stalemate over how to move forward.

So, the key question now is what's next? Republicans argue it's time for Biden to come to the negotiation table and start hashing out a deal. House Majority whip Tom Emmer reiterated that position on CNN this morning. Here's what he have to say.

[03:10:01]

REP. TOM EMMER (R-MN), HOUSE MAJORITY WHIP: The White House, since this Congress began has had no ideas whatsoever except jacking up taxes and spending more money. We have to get this right, Dana, and the Senate -- the Schumer Senate, they have no ideas either. Our recommendation is we pass it through the House, take it up in the Senate and pass it.

TREENE: So Emmer argues that the Senate should take this up and pass it, but in reality that is not going to happen, the votes aren't there.

Most Democrats are even refusing to consider this bill as a jumping off point for future deal. But, it is worth noting that we are beginning to see some cracks in that position, Emmer mentioned. Senator Joe Manchin is one of a growing number of Democrats pressuring Joe Biden to start negotiations. And really, the bottom line here is that Congress is running out of time. Congress meets with the deadline for when a deal must be reached at some point in July. The House is not even in this week, they are on recess. It's unlikely we will see them move the ball forward in the coming days. And with the deadline right around the corner, every week counts.

Alayna Treene, CNN, Washington.

(END VIDEOTAPE)

CHURCH: Joining me now from Irvine, California is Eric Swanson. He is a Professor of Economics at U.C. Irvine. Appreciate you being with us.

ERIC SWANSON, PROFESSOR OF ECONOMICS, U.C. IRVINE: Thank you.

CHURCH: So America is once again on the brink of a treasury debt default due to politics. Republicans refusing to raise the debt limits, unless they get spending cuts in return. And President Biden refusing to negotiate on those cuts, because he says no condition should be attached to raising the debt limit. So how dangerous is this game of politics, and what would be the consequences of a debt default on the country and the world?

SWANSON: So, treasury securities are very, very important security in the U.S. financial markets and in the global financial markets. If there were to be that default of some kind, you'd be jeopardizing the value of those securities. You'd be jeopardizing liquidity of those securities. And that could basically -- you know, if you think of treasury securities has sort of the oil that lubricates the financial system, you'd be basically if you remove that oil or if you got mop that oil in some way, you would basically put a stop to the financial system in the U.S. and around the world. So we would have really huge repercussions, if in fact that were come to that.

CHURCH: Let's look at what we need to avoid the catastrophic impact of a debt default. Will President Biden be forced to negotiate spending cuts proposed by Republicans, if they refused to budge, and take the country to the brink of disaster on this, or is there another option that might work to avoid default?

SWANSON: So, people have floated various gimmicks to avoid -- you know, to get around the debt ceiling. In fact, the treasury has been pursuing some low-level gimmicks for the past several months, and there may be some other ones they may not have yet use that they could pull out.

If they do come to a point where the run out of those gimmicks, it is not clear the treasury has to default on the government debt, that they could end up halting payments to federal employees perhaps, perhaps a halt payments to Medicare, perhaps they halt payments to Social Security. So, it doesn't necessarily mean they will default on the treasury debt.

In fact, I think that Treasury Secretary Yellen and Federal Reserve Chair Powell would everything would two per event devoting on the treasury debt. They did that as an absolute last resort. And I don't think that would really ever happen.

CHURCH: So, what about the economy right now? How is it looking giving all the recent talk of a possible recession, and also, the disruptions in the banking system, new trouble, of course, trying to save First Republic Bank?

SWANSON: So, the economy has been looking generally pretty good. I mean, a little bit weaker than at the end of last year. The economy is going a little more slowly, we just got the GDP data out last week, and that is to be expected.

The Federal Reserve has been raising interest rates quite a lot. They are deliberately trying to slow down the economy to reduce the price pressures and reduce inflation.

But there has not been any sign of a recession at present. The closest thing we have was the bank turmoil last month, as you mentioned. That seems to be, largely, resolved now. They are working on sort of the tail-end of that right now with First Republic Bank this weekend. But this seems to be a few isolated banks. There doesn't seem to be any systemic problems. And so, the economy seems to be doing generally okay, just growing a little more slowly than before.

CHURCH: And the Federal Reserve is set to meet this week and is expected to raise interest rates by another quarter of a percent, in an effort to bring down inflation. What impact will that have on the economy do you think overall, and on the sale of First Republic Bank?

[03:19:55]

SWANSON: It should have no impact. The sale of First Republic Bank should be closed i think by the end of today, or tomorrow, it sounds like so -- there'll be no impact on that.

The quarter of a percentage point, you know, it's a relatively small move. They're moving much more than that in the middle and end of last year. So, we would expect any big effects from one more quarter of a percentage point increase in short term interest rates. It will put just a little bit more pressure on the economy, just a little bit more pressure on inflation.

And then, I think they want to sort of see -- I think they want to sort of pause for a minute or slow down for a minute and see what is going to happen from the interest rate increases they've already gotten in the last nine months or year. I think they want to give things a chance to play out and then take it from there, see if they need to go up anymore or if they can hold.

CHURCH: Eric Swanson, thank you so much for your analysis, appreciate it.

SWANSON: Sure, Thank you.

CHURCH: Parts of the south and eastern United States will be assessing damage from tornadoes in the hours ahead. The National Weather Service confirms that one has hit the coastal city of Virginia Beach, Sunday evening. The man who shot this video said he was eating at a restaurant when sirens went off. He went outside to see what was going on, and then warned people inside. Law enforcement and the Fire department are now helping residents impacted by the storm damage. Other crews are responding to reports of gas leaks.

And take a look at this video, it is the moment EF-2 tornado touched down in Palm Beach Gardens, Florida. The winds was so powerful, they even flipped a car multiple times on the highway. And you can also see the funnel cloud and debris flying through the air. So far though, no serious injuries have been reported.

Well, it wasn't weather, but overcrowding that caused a roof collapse near the campus of Ohio State University, sending more than a dozen people to hospital. Fire officials say the roof crashed down on the porch below during a house party. Witnesses described as many as 45 people on top of the structure when it collapsed. Some people were pinned under the debris, but were pulled to safety.

Well, the latest now on the conflict in Sudan, ahead here on CNN. A doctor's group warns that the country could be headed for an environmental catastrophe. We have a live report on that.

Plus, another convoy of Americans has arrived at Port Sudan. We've got details on U.S. efforts to get citizens out of the water. Do stay with us for that and more.

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[03:20:00]

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UNKNOWN (voice-over): This is CNN Breaking News

CHURCH: A group of American citizens about to step on dry land and reach safety having fled the conflict engulfing Sudan.

We want to bring in CNN's Larry Madowo who joins us live from Jeddah in Saudi Arabia, where the first U.S. evacuation ship has just arrived. So, Larry, talk us through this as people prepared to disembark from the ship.

LARRY MADOWO, CNN CORRESPONDENT: Rosemary, this is the first major U.S.-operated ship to arrive here in Jeddah, Saudi Arabia. It has made the trip across the Red Sea from Port Sudan. And we are told that a U.S. Consulate General here in Jeddah that's got about 100 Americans as well as other nationalities on that ship. And we also confirmed that it is part of the convoy -- several convoys, two different convoys arrived in Port Sudan over the weekend from Khartoum, and some people on the ship were a part of the convoys.

The U.S. State Department confirmed that these two convoys that come in over the weekend with U.S. -- remaining government employees, but mostly private U.S. citizens who were still left in Sudan, as well as locally employed workers. And they were arranged in this travel over here in Jeddah in Saudi Arabia. So, you see people just setting up here, they're waiting for the first Americans to disembark here.

This is the U.S. Navy Service Brunswick, which is a military transport ship that does a sort of journeys, it was able to get to Port Sudan quickly and do this. And you see lots of people here from the U.S. embassy waiting to receive these people, we've been seeing this the whole time. Every time there are Americans coming off of a ship, there will be people from the U.S. Consulate here in Jeddah, arrange to receive them, arrange the transport, get them to where they are going, the buses set up for them.

And this is the largest contingent of Americans who have arrived here in Jeddah since this operation began just over two weeks ago. This is day 16 of the conflicts in Sudan and still more people trying to get out because the ceasefires don't seem to be holding.

CHURCH: And Larry, you were on one of the ships and you talked to various people who had gotten out of Sudan. Talk us through what people were saying to you about their relief that they had been able to get out of the country now, it's war-torn.

MADOWO: We heard horrific stories, Rosemary. We took a trip with the Royal Saudi Navy from here in Jeddah, across the Red Sea to Port Sudan on an evacuation mission, and came back with 52 people evacuated from Port Sudan.

People told us about seeing dead bodies in the streets. And we confirmed that, because the Sudan Doctors Trade Union said that the number of bodies lying on the streets has become an environmental catastrophe. That is one of the fears.

People told us about getting detained along the checkpoints in the road from Khartoum to Port Sudan, that's about 500 miles, more than 830 kilometers. It's a dangerous journey, several checkpoints. And you just hope that you can make it through.

And so many people are heartbroken that they can leave, because those people are leaving here are either foreign nationals or the Sudanese dual nationals in another country. Most Sudanese people cannot take that route through Port Sudan and here to Jeddah. And so, those who make it out here, especially the Sudanese dual nationals feel relief to be safe, but they are also heartbroken for so many people who do not have that chance, who are still going through this conflict between two warring generals that has 45 million Sudanese people caught in the crossfire. And every day, the numbers of dead, the numbers of wounded keep increasing.

[03:24:55]

CHURCH: Yeah, it is just horrifying when we hear the stories, when we see the images of what's happening in Sudan, two military leaders essentially fighting over control of the country. So, talk to us about what happens now. So 100 Americans on the ship as well as other citizens and they've gotten out of Sudan now. So what happens to these people now, what's the process?

MADOWO: They need to find the accommodations, and then to begin arrange transport onward back to the U.S. But this is a hundred. The estimate is there about 16,000 dual nationals in Sudan. Some of them have chosen not to leave, as we heard from the State Department. But there may be a couple hundred, maybe over a thousand who don't want to leave because they don't feel safe there.

So a hundred is a drop in the ocean, out of the people in Port Sudan alone still want to leave, so there could be other U.S. military transport ships like this that could -- people getting flown out of Port Sudan into nearby airports.

The U.S. was among the first countries to evacuate its diplomats and their families out of Sudan. But it got a lot of criticism for essentially abandoning their citizens, that's how many private U.S. citizens in Sudan feels. But the argument from the State Department and the White House is that the U.S. doesn't typically evacuate its citizens out of situations where governments are collapsing. It did not do so in Yemen, in Syria, in or Libya, when those governments collapsed. And it made an exception in Afghanistan. But in this case of Sudan after criticism, after Western nations like the U.K., and Ireland, and Germany and France, even China, Japan, South Korea starting to evacuate those citizens, any African countries like Ghana, and Uganda, and Tanzania, the U.S. had to kind of walk back their statements and begin coordinating these people over ground to Port Sudan, and then into ships like this, and eventually back to the U.S., Rosemary.

CHURCH: And Larry, as you are speaking to us, were see people working on the ship moving down the ramp, still waiting for those people on the ship who fled Sudan to disembark. But as you mention, I mean we're talking about thousands of people wanting to get out of Sudan. This is just about 100 or so Americans and other citizens. So this ship will go back to Sudan, and maybe make multiple trips.

MADOWO: That is the assumption. The U.S. Consulate General here Faris Asad said they would not comment if there will be other ships today or in the coming days. But there is suddenly a need, there are hundreds of Americans in Port Sudan that need to be evacuated. And this one ship cannot do the job.

And here's the complication, Rosemary. Like I mentioned, we did that trip with the Saudi Navy to Port Sudan and back. The journey from here in Jeddah across the Red Sea to Port Sudan is 10 to 12 hours, depending on the conditions at sea. But there's just a limited amount of people that it can take. A hundred is one of the larger numbers, but one of the things the Saudis have done is charter -- private commercial ships. So one arrived here on Saturday with 1,800 people from all over the world, and that was one of the biggest shipments.

And so, I feel like in these situations, it's going to be much more need for bigger kind of -- military transport ships to get as many people as possible out of Port Sudan as that situation continues to worsen, and people are desperate to leave.

CHURCH: Absolutely. And we will of course stay on top of this story. It is critical, people trying to get out of Sudan from many different countries. And many people from Sudan want out as well. Some horrifying stories of what has happened to some of their family members. Larry Madowo joining us from Jeddah in Saudi Arabia, many thanks for bringing us up today on the situation.

And as Larry mentioned, sporadic fighting has continued despite yet another ceasefire, the sixth since the conflict began. And Sudanese doctors are warning that dead bodies left in the streets are creating an environmental catastrophe. They say shortages of food, water and medicine are also putting the country at risk for a humanitarian crisis.

So, let's bring in CNN's Senior International Correspondent David McKenzie now, he joins us live from Johannesburg in South Africa. Good Morning to you, David. So, what is the latest on the fighting across Sudan, and of course, the worsening humanitarian crisis in the country?

DAVID MCKENZIE, CNN SR. INTERNATIONAL CORRESPONDENT: Rosemary, this is now another attempted ceasefire that's been brokered by the U.S. and Saudis that's really a ceasefire only in name. Just this morning within Khartoum, we're getting a word that there is ongoing fighting, sporadic fighting, and some heavy clashes over the weekend, particularly north -- the northern part of the capital, around the Presidential Palace and in other regions, and of course in other parts of the country.

So the ceasefire is really in name only, and because of the ongoing fighting, despite foreigners and some Sudanese being able to get out of the country, it is just a worsening situation in the capital for doctors, for citizens just trying to survive. And that Sudan's Doctors Union say that the lack of services, the garbage piling up.

[03:30:00]

And the horrifying news according to them that there are dead bodies that are on the streets that haven't been able to be cleared, really speaks to the terrible situation, in particular, in the capital. There is a U.N. official, a very senior official that's been dispatched by the U.N. Secretary General to Sudan. But at this point, no real indication that there is a movement towards ending this fighting. Rosemary.

ROSEMARY CHURCH, CNN ANCHOR: And David, any concrete sign of a more extended ceasefire or negotiation?

MCKENZIE: Well, I think just stopping the guns for now would be a very positive sign, but it hasn't happened. There have been some periods of calm that, in particular, have allowed foreigners to get out of the country. But you've had very sustained pressure coming from, in particular, the Kenyan president, the head of the African Union.

Over the weekend, the Prime Minister of Ethiopia saying he had spoken to both generals who are responsible for fighting in this conflict. You've had these U.S. and Saudi ceasefires, as I've mentioned. But all of this pressure appears not to be having any demonstrable effect in stopping the fighting.

There have been some proposals of talks in neighboring South Sudan by the African Union. That's something that General al-Burhan of the Sudan Armed Forces has said he would be open to. But right now, no real indication and with even, you know, videos and stills released by al-Burhan's team showing him in a command center, rallying his troops and operating.

It doesn't appear that any sort of stopping of the fighting is on their minds. We've also news from Sudanese Armed Forces of convoys of the rapid support force of paramilitary group moving from the west of the country into Khartoum, which could really only show that this might escalate further rather than come down. Rosemary.

CHURCH: All right, David McKenzie joining us live from Johannesburg, many thanks for your report. And still to come, Russia launches a new wave of strikes as Ukraine prepares for a counter offensive. We will have all the latest in a live report just ahead.

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[03:35:00]

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CHURCH: We are following developments in Ukraine where officials say Russia has launched a new round of missile and drone attacks. Several regions in the east were targeted including Dnipropetrovsk where more than two dozen people have been injured including three children.

A top Ukrainian commander says 15 of 18 cruise missiles fired by Russia were intercepted, and the Ukrainian official in Kyiv says the country's air defense forces destroyed missiles in the airspace above the capital. On the ground, the Ukrainians in Kyiv took shelter in the city's metro. Images showing people sleeping and others sitting while they wait for the "All-Clear", including some with small children.

And CNN's Clare Sebastian is following all the developments for us. She joins us now live from London. Good morning to you, Clare.

So, Ukraine is set to launch its counteroffensive to Russia anytime now. What more are you learning about this, and how Moscow is preparing, as well as these latest strikes on Ukraine? CLARE SEBASTIAN, CNN CORRESPONDENT: Yeah, Rosemary. I think this round of pre-dawn attacks coming on top of Friday's barrage against Ukraine, which was the deadliest in months affecting civilians, shows that Russia is not an aggressor that respects battlefield frontlines. We continue to see this tactic of attrition against civilians.

Ukrainian air defenses, which you see in action there will be heavily increased, thanks to western aid. They've now taken delivery of patriots, for example, still not enough. We still saw some missiles get through 25 injured in the Central Dnipropetrovsk region which is at least a hundred kilometers from the closest frontline there.

So, you can see how Russia continuing to demonstrate while it's not making a huge amount of progress on those front lines, it still has the ability to inflict damage from the air. Now, Ukraine, as you say, says it is wrapping up preparations for its counteroffensive.

For obvious reasons, it's not saying when or where that will start. It seems likely that it could be in the south. It's now taking delivery of a lot of the western tanks and army vehicles that have been promised so, preparing for that.

Moscow, we know, we've seen satellite imagery that shows that it is fortifying those frontlines, its defensive positions, all the way to Crimea -- trenches, ditches, minefields, things like that. And all this coming as we're seeing more changes to its military command structure.

Over the weekend, Moscow placing a deputy defense minister in-charge of logistics that's not exactly clear why, but that coming as we're seeing more criticism, more signs of in-fighting from the Head of Wagner, Yevgeny Prigozhin whose mercenaries remain active around Bakhmut saying that they are running so low on ammunition that they might even have to withdraw from that highly strategic city.

All of that, not looking like a very cohesive front coming ahead of what may be a Ukrainian offensive. All of this, of course, making for a pivotal moment in this conflict. Rosemary.

CHURCH: All right, Clare Sebastian joining us live from London, many thanks.

U.S. government rule that has blocked thousands of migrants from entering the country is about to expire and cities on the border are getting ready for a potential wave. We will hear from one border city mayor about the challenges he's facing. And Cuba who is suffering fuel crisis that gets worse by the day, why drivers can't find gasoline and what that means for May Day in the country.

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[03:40:00]

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CHURCH: U.S. states that border Mexico are bracing for a new potential super surge of migrants. That's because the Federal Government's Title 42 is expiring just 10 days from now. It enabled the U.S. to quickly expel migrants due to the Covid pandemic. But now that the Biden administration has officially declared that health emergency over, cities on the border are anticipating a huge influx of immigrants.

(BEGIN VIDEO CLIP)

OSCAR LEESER, EL PASO, TEXAS MAYOR: We're getting prepared now for what we call, the unknown, and the unknown will happen May 11th. Title 42 will be lifted after May 11th and there's a lot of, as you've seen, we're starting to pick up some momentum. As asylum seekers are on the streets of downtown El Paso and other areas of our community.

(END VIDEO CLIP)

CHURCH: The mayor of El Paso, Texas says he plans to declare a state of emergency, Monday, largely to prepare for public housing needs if there is a migrant search. Meanwhile, the Biden administration is making clear that the border will not be wide-open and regular border rules will be enforced.

Meantime, Chicago's mayor is urging Texas Governor Greg Abbott to stop what she calls the inhumane and dangerous action of bussing migrants to her city.

Lori Lightfoot sent Abbott a letter stating in part, "Your lack of confederation or coordination in an attempt to cause chaos and score political points has resulted in a critical tipping point in our ability to receive individuals and families in a safe, orderly and dignified way. We simply have no more shelters, spaces or resources to accommodate and increase of individuals at this level with little coordination or care, that does not pose a risk to them or others."

And CNN has reached out to Governor Abbott's office for a response.

In Cuba, gasoline and diesel are in short supply and tempers are flaring. The fuel shortage has even forced a change in the annual May Day celebrations. CNN's Patrick Oppmann has a story from Havana.

(BEGIN VIDEOTAPE)

PATRICK OPPMANN, CNN CORRESPONDENT (voice-over): It's a country running on empty. Cross Cuba right now, more cars seemingly wait on line to fill up then drive on the road. Even at stations when there is no gas, people line up for when or if it finally arrives.

[03:45:00]

For drivers like Eliene (ph), the sudden island-wide shortage of fuel means they spend their days trying to fill up rather than working. It ain't easy, they sell too little he says, only 40 liters that only gives me enough for one day. They won't give me more than that.

Some people immediately siphon the gas they manage to pump either to resell or to hoard it as they get back in line all over again. Increase in the Cubans complain that police are letting too many of what they call "indisiplinas", undisciplined behavior, take place.

OPPMAN (on-camera): What many people do is they save several spots per car which multiplies many times over how many people are actually in this line waiting for gas. Once the gas actually arrives, people come rushing back, cut the line and that's when all hell breaks loose.

OPPMAN (voice-over): As the line gets longer, tempers get shorter. Certain privileged groups like foreign diplomats have their own gas stations assigned to them, but it makes a little difference when there is no gas to pump.

The Cuban government has said little about the crisis, the worst in years, but acknowledges that there has been a disruption of shipments from suppliers like Venezuela, Cuba's socialist ally who they receive oil from in exchange for medical workers.

JORGE PINON, UNIVERSITY OF TEXAS AT AUSTIN ENERGY INSTITUTE: The first domino piece that falls out of this is Venezuela, that it's selling its better quality crude to those customers that can pay cash. So, the good quality crudes that Cuba used to get are no longer there because Cuba doesn't pay cash for crude oil.

OPPMAN (voice-over): The ripple effects of the gas crunch impact nearly everyone on these islands. University classes have been canceled. Farmers don't have fuel for tractors. There is not enough diesel for garbage trucks to empty dumpsters that overflow with trash.

And the Cuban government was forced to cancel the massive parade held every May Day in Cuba's Revolution Square. Usually, the islands' top leadership looks on as hundreds of thousands of workers file by. This May Day, officials are encouraging Cubans to march in their own neighborhoods. There simply isn't enough fuel for anything on a large scale.

"We will still commemorate May Day, he says, but rationally and with maximum austerity. Cuban officials have said the gas shortages will last at least through the end of May. And as frustrating and punishing as this crisis is for Cubans, all people can do is hope and endure their long waits.

Patrick Oppmann, CNN, Havana.

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CHURCH: Britain is just days away from the coronation of King Charles. We will have a report from London on the preparations, traditions and notably, some of the differences to expect compared to his mother's coronation. Back with that and more in just a moment.

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[03:50:00]

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(BEGIN VIDEO CLIP) UNKNOWN: Six, five, four, three, two, one. Engine's full power.

CHURCH: After several delays due to weather and technical issues, SpaceX was finally able to launch its falcon-heavy rocket from Florida's Kennedy Space Center on Sunday, its sixth launch ever. It's carrying three satellites into orbit. The main payload is ViaSat-3 Americas weighing 14,000 pounds. SpaceX says it is the world' highest capacity satellite and the largest all-electric satellite ever launched.

(END VIDEO CLIP)

CHURCH: In the NBA playoffs, the defending champions Golden State Warriors are staying alive, thanks to a record-breaking performance by their star, Steph Curry. He scored 50 points in Sunday's Game 7 match- up against the Sacramento Kings, the most points ever in a Game 7, in NBA history.

And the Warriors cruised to a 20-point win to advance to the second round. They will take on LeBron James and the L.A. Lakers next Game 1, Tuesday in San Francisco. And in the Eastern Conference Semi-Finals, the Miami Heat rally for a 108 to 101, Game 1 victory over the Knicks in New York, and they will play Game 2 on Tuesday.

Well, we are now just six days away from the coronation of King Charles III. The ceremony this Saturday will be Britain's first in seven decades. Of course, it will have all the pomp and pageantry that you would expect, as well as rituals dating back hundreds of years. But there will also be some notable differences compared to the coronation of his mother, Queen Elizabeth.

CNN's Royal Correspondent Max Foster has a preview now from London.

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MAX FOSTER, CNN ROYAL CORRESPONDENT (voice-over): Not since 1953 that we had a glimpse of this sacred moment, the crowning of a monarch. Queen Elizabeth, then just 27, thrust to the throne after her father's untimely death. Her coronation was designed to introduce the young queen to the world and give a morale boost to post-war Breton.

Seventy years on, and amidst the cost of living crisis, King Charles' coronation will have many of the same traditions incorporated, albeit slightly toned down. Up to 2800 guests in Westminster Abby, CNN understands, versus the 8000 that gathered for the late Queen's.

ELIZABETH NORTON, ROYAL HISTORIAN: The King has actually ruffled some feathers by not inviting many members of the ancient nobility, including some of the Dukes, in fact. But instead actually, the King has invited members of the community, so, charitable workers, for example.

FOSTER (voice-over): A sign perhaps that Charles wants to make the monarchy more accessible, though much of the pomp and ceremony will of course remain.

[03:55:00]

He'll sit on the coronation chair, used by monarchs for more than 700 years, and he'll be crowned with the St Edward's Crown, a gold velvet and jewel encrusted peace weighing more than two kilograms. The coronation is first and foremost a religious ceremony. It culminates in the King's anointing with holy oil, which has been consecrated in Jerusalem.

NORTON: It's seen as a symbolizing the King's commitment to God because of course he is a very religious man himself, he's now the Head of the Church. It's a sacred moment.

FOSTER (voice-over): His wife, Camilla, will also be anointed and crowned. Charles' sons, William and Harry will be there, although Harry's wife, Meghan, will remain at home in California with their two young children. It remains to be seen what role Harry will play in proceedings now that he has stepped back from his senior role duties.

Foster (on-camera): For many in Britain, the coronation is about more than just another public holiday. There will be street parties up and down the U.K., and thousands will come here to Buckingham Palace to witness the famous balcony moment, to see for the first time newly- crowned King and Queen.

Many more will line the streets for the coronation procession, just as they did for Queen Elizabeth seven decades ago. The King and Queen will travel in this gilded carriage accompanied by a huge military procession. Night-time rehearsals spotted in the streets of London, as the capital gears up for a moment in history.

Max Foster, CNN, London.

CHURCH: And CNN will air special live coverage of the coronation of the King Charles III this Saturday, May 6th. CNN's Anderson Cooper will be live outside Buckingham Palace with Christiane Amanpour and Max Foster. It all starts at 10 a.m. in London, 5 a.m. in New York.

And thank you so much for company. I'm Rosemary Church, have yourselves a wonderful day. CNN Newsroom continues with Max Foster, next.