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CNN International: Ukraine Denies Involvement in Kremlin Drone Attack; PacWest Shares Drop 50 Percent in After-Hours Trading; Fed Raised Key Interest Rate Again But Suggest May Now Pause; Suspect Accused of Killing 1 Woman, Wounding for Captured; Gunmen Killed in Attack on U.K.-Israeli Mother, Daughters; Serbia Reels from School Attack that Left Nine People Dead. Aired 4-4:30a ET

Aired May 04, 2023 - 04:00   ET

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

[04:00:00]

BIANCA NOBILO, CNN ANCHOR: Hello and a warm welcome to our viewers joining us in the United States and all around the world. I'm Bianca Nobilo live from London. Max Foster is on royal assignment for the rest of the week. Just ahead on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Russia is saying Ukraine sent two drones to kill President Vladimir Putin.

UNIDENTIFIED MALE: We don't attack Putin or Moscow.

UNIDENTIFIED MALE: We remain strongly committed to bringing inflation back down to our 2 percent goal.

UNIDENTIFIED MALE: There is a growing chorus of voices, including economist, I will including lawmakers, urging the Fed to pause with the rate hikes.

UNIDENTIFIED FEMALE: This investigation is significant and also a reminder that they are not just looking into how these materials are handled but they are also very closely examining whether anyone tried to get in the way of having all the evidence.

(END VIDEO CLIP)

ANNOUNCER: Live from London, this is CNN NEWSROOM with Max Foster and Bianca Nobilo.

NOBILO: It's Thursday, May 4, 9:00 a.m. here in London and 11:00 a.m. across Ukraine. Where Russia appears to be retaliating for a drone strike on the Kremlin. Ukraine denies it had anything to do with the attack which Moscow calls an assassination attempt on President Vladimir Putin. He was not in the Kremlin at the time. A CNN analysis supports Russia's claim that two drones flew above the Kremlin early Wednesday but does not evidence that Ukraine was behind the attack.

Meanwhile, drones shot down over Ukraine today have the words for the Kremlin and Moscow written on them. Authorities in Kyiv called today's aerial assault from Russia the most intense so far this year. CNN's Clare Sebastian joins us in London and International diplomatic editor Nic Robertson is live for us in eastern Ukraine.

Nic, You can tell us more about President Zelenskyy's statements about this attack which happened in the Kremlin and also whether or not these attacks that we've seen in the last 24 hours bear out the concerns that Russia might be using it as a pretext for further escalation?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, that's clearly the concern. And I think that is what President Zelenskyy was trying to get to when he spoke in Helsinki where he was meeting with Nordic partners just yesterday, hours after the alleged incident -- drone incident over the Kremlin became widely known publicly. He dismissed it. Ukrainian officials have said it was tricky of their enemies. President Zelenskyy said quite flatly, we do not attack Putin, do not attack Moscow.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: We don't attack Putin or Moscow. We fight on our territory. We are defending our villages and cities. We don't have enough weapons for this. That's why we don't use it anywhere else. For us that is a delicacy. We can't spend it. And we didn't attack Putin. We limit to tribunal.

(END VIDEO CLIP)

ROBERTSON: How will Russia respond? Well, perhaps that was why some of those drones, 15 of them fired at Odesa, the southern command in Ukraine, saying that they shot down 12 of those drones, three others falling on educational facilities. And on those drones, as you said, the words were "for Moscow," "for the Kremlin." So, is that the Kremlin's answer?

City officials in Kyiv saying it was the heaviest bombardment there or have a series of missile assaults that they had witnessed this year. But none hit the city. They were all taken down by defensive systems. There were parts of those missiles that did land actually in Kyiv, but none of the missiles were able to get through the air defenses and hit their targets.

But where it was the heaviest and most devastating strike by Russia in the past 24 hours was in Kherson in the south and east of the country. And there, according to Ukrainian officials, 539 artillery strikes, that is a massive ratcheting up. 82 of them at the train station there. President Zelenskyy's office releasing some devastate images of the civilian casualties -- 23 killed, 46 wounded, two of those children. And so, Kherson which is perhaps one of those places Russia expects of Ukraine potentially launching its counteroffensive, that came in with the heaviest bombardment and highest number of civilian casualties.

[04:05:08] Response from the Kremlin not clear. Perhaps Kherson more likely preemptive Russian attacks trying to head off what they see as a coming Ukrainian counteroffensive.

NOBILO: And Clare, clearly this drone attack -- you know, whatever its providence -- is already having very tangible, very severe impact on the battlefield extensively. Because Russia says it was an Ukrainian attack. It does beg a lot of questions. I mean, is this a false flag operation? Was it a performative strike? Was it people supportive of Ukraine? Is it possible to make an assessment at this stage?

CLARE SEBASTIAN, CNN CORRESPONDENT: Not really. I mean, all we know based on the videos that came out and some of them came directly from state run TV, is that there were two drones. And we've analyzed the granular for the details of these videos, the times on the clock tower at Red Square, where you can see the drones flying past. The people on the ground, the car, all kinds of things to ascertain that there were two drones 16 minutes apart coming in from different directions.

But we don't know where exactly they came from. We don't know who fired the drones. So, we don't know if the facts of the Kremlin are reporting, and that this came from Ukraine bear out in real life. But in a sense that doesn't really matter.

What matters in Russia is what the Kremlin is saying. They went straight to the extreme option calling this an assassination attempt on Putin. Clearly that looks like an attempt to stir up sort of vengeful feelings among the Russian public ahead of Victory Day to sort of to have justification for this war. It has also sparked a reaction from hardliners in the Kremlin, several in the Kremlin sort of the political elites, including former President Medvedev, calling directly for the assassination of President Zelenskyy. And I think calling it a terrorist attack also a significant that we've seen an uptick in that kind of rhetoric from Russia recently. That will justify more surveillance at home. Things like border checks, law enforcement, all of that that we've seen increase throughout the course of this war. So, I think critical to watch how this continues to impact public opinion in Russia.

NOBILO: And interesting that you mentioned Victory Day, which I think is next Tuesday. Obviously, anniversaries can be overstated, but you can understand the thinking behind trying to consolidate morale and stir up some of those feelings. Clare Sebastian, thank you so much. And Nic Robertson, thank you in eastern Ukraine for us.

Now there's increasing concern that another regional U.S. bank might be in financial trouble. Shares of Pacific Western Bank fell by more than 50 percent in after-hours trading. It came after Bloomberg reported the bank is exploring strategic options including a possible sale or split. But worst fate, a run on its profits back in March. But the bank says that customers have stopped pulling out their money and unlike other banks that have recently failed, most of Pacific Bank deposits are Federally insured.

And we're keeping a close eye on U.S. markets after this PacWest report and the Feds latest interest rate hike. Here is where U.S. market futures stand right now. So, things are looking positive at this stage. Wall Street is coming off a down day triggered not so much by that rate hike -- which investors were expecting -- but by the Fed chairman's suggestion that the board is taking a wait and see approach to any future hikes. That's uncertainty and Wall Street doesn't like.

This is the tenth consecutive time that the Fed have raised its benchmark interest rate dating all the way back to March of last year. It now stands at a 5 to 5 in its quarter percent. The idea is cooling inflation by raising borrowing costs. It will discourage demand, credit. And as the theory goes, that in turn will slow spending and keep prices from rising. CNN's Matt Egan has the details.

(BEGIN VIDEOTAPE)

MATT EGAN, CNN REPORTER: The Fed's war on inflation goes on. This marks the tenth straight meeting with a rate hike bumping up borrowing costs to levels unseen in more than 15 years. But the Fed did drop hints, significant hints, about a pause in this inflation fighting campaign. Maybe.

This rate hike was a unanimous decision but it also a controversial one because it comes just days after the second largest bank failure in American history. And these recent bank failures were caused in part by the Fed's spike in interest rates. By lifting rates even higher this week, some experts warn that the Fed is basically pouring gasoline on the fire. Setting the stage for a credit crunch and perhaps a recession.

Now the Fed is signaling that this inflation fight could be nearing an end. Officials removed a key line from the statement that previously indicated more rate hikes are likely coming. Fed Chair Jerome Powell described this as a, quote, meaningful change. And he left the door open for a pause depending upon what happens next in the economy.

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But Powell also said that no decision was made at this week's meeting to pause at the next meeting in June. So, what does it mean for consumers? Well, there's just no relief coming yet from crushing borrowing costs. Mortgage rates, they have jumped nearly three percentage points since the Fed started raising rates last March. Typical car loan rates are at 13-year highs and it has never been more expensive to carry credit card debt. And even if the Fed does pause rates soon, Powell indicated today that they are in into rush to cut rates yet. The question is how much this banking crisis is going to slow down landing in hurt the economy. And no one, not even the Fed knows the answer to that. Back to you.

(END VIDEOTAPE)

NOBILO: There's no sign of progress between President Biden and Congressional Republicans at resolving the debt limit crisis. But the White House is warning of disastrous consequences if the federal government defaults on its debt. The Council of Economic Advisors predicts the loss of 8 million American jobs and the stock market reduced in value by half. Treasury Secretary Janet Yellen says that the government could run out of money as soon as June 1.

A suspect is in custody after a shooting at a Atlanta medical facility that left one woman dead and four others injured. The woman who was killed has been identified as 38-year-old Amy St. Pierre who worked at the U.S. Centers for Disease Control and Prevention. 24-year-old Deion Patterson who came into the medical facility seeking treatment on Wednesday, allegedly became enraged and opened fire with a handgun. Authorities say that he fled on foot and then stole a vehicle nearby. Police finally tracked him down in an Atlanta suburb.

(BEGIN VIDEO CLIP)

CHIEF STUART VANHOOZER, COBB COUNTY, GEORGIA POLICE: One real-time operator in particular saw a 911 call come in, literally said I think this is going to be him. We prioritized that call on the radio and we had some officers both undercover and uniformed officers I believe, if I have my facts correct, that an undercover officer was the one that originally saw and can fronted the confronted this individual and was able to then have backup from uniform officers that came in and took him into custody without incident.

(END VIDEO CLIP)

NOBILO: CNN's Gary Tuchman has more on how the manhunt ended.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT: For nearly eight hours he was on the loose. But Deion Patterson, the accused killer, is now under arrest. He was captured in the suburbs here in Cobb County, Georgia about 11 miles northwest of where the shootings took place. Right here at a gated community, a condominium called Waterford Place, we saw police cars speeding down the street and entering inside there. We thought maybe it was just a tip. We had heard all day that the belief was that he was in the suburban Cobb County.

15 minutes after the police entered, we talked to an officer who came out who confirmed to us that Deion Patterson had been captured. We talked to neighbors inside this condominium community. As we said, people have been saying all day, authorities, thought it was very possible that he was here in Cobb County. Cameras picked up the license plate on a car that he allegedly car jacked and it indicated the car that he then abandoned was only two blocks away from here.

So, police were searching the whole area. They went inside and according to the women who lived there -- who we just talk to a short time ago -- they told us they heard dogs barking and they weren't stopping barking. It was very unusual because they knew this man might be in Cobb County. They were suspicious. One of the women had a hunch. She called the police and said we have a pool and gazebo area, it's possible that he's there. We heard the dogs barking there. The police entered. The next thing the ladies tell us, that the police yelled, get on the ground." And they realized that this man had been caught. And now he is in custody.

This is Gary Tuchman, CNN, in Cobb County, Georgia. (END VIDEOTAPE)

NOBILO: The shooting has reignited discussion on gun violence in the U.S. One Georgia Senator had a message for his fellow lawmakers on Capitol Hill. Here's what Senator Raphael Warnock had to say.

(BEGIN VIDEO CLIP)

SEN. RAPHAEL WARNOCK (D-GA): I have two small children and their schools were on lockdown responding to this tragedy. They are there. I'm here. Hoping and praying that they are safe. But the truth is none of us is safe. As a pastor, I'm praying for those who are affected by this tragedy, but I hasten to say that thoughts and prayers are not enough.

[04:15:00]

And in fact, in fact, it is a contradiction to say that you are thinking and praying and then do nothing. It is to make a mockery of prayer.

(END VIDEO CLIP)

NOBILO: Israel says it has killed two gunmen behind a deadly attack on a British Israeli mother and her two daughters in the West Bank last month. The third militant accused of aiding the gunman was killed as well in a raid early Thursday in the West Bank city of Nablus. Israeli Prime Minister Benjamin Netanyahu had condemned the attack on the mother and her girls whose funeral was reportedly attended by thousands.

For more now Elliott Gotkine joining us from Jerusalem. And Elliott, Obviously the story of the healing of the mother Lucy and her daughters Rina, Maia Dee, captured the world's attention. Now we're hearing just the early information about this raid that appears to have unfolded earlier this morning.

ELLIOTT GOTKINE, JOURNALIST: That's right, Bianca. It took place about 3 1/2 hours ago, so just before 8 o'clock in the morning local time. The Israeli Security Forces said that they were operating in Nablus. Subsequently we got word from the Palestinian Ministry of Health saying that three Palestinian men had been killed. And they were later identified by the Israeli Security Forces as the two gunmen responsible for killing Lucy, Rina and Maia Dee last month in that attack on their vehicle as they were traveling to the north for a family vacation. And then in addition to that, another militant operative who was with them.

Now the Israeli Security Forces said that they were part of the Hamas military group. Hamas subsequently admitted as much, hailing the three -- hailing the two gunmen as heroes of the Jordan Valley operation.

Now, I subsequently received a statement -- an audio statement from Leo Dee, in which he said: I and the kids were delighted to hear that the terrorists were eliminated today. Most of all, that it was done in a way that apparently did not endanger the lives of Israeli soldiers. Now subsequently we heard from Prime Minister Benjamin Netanyahu who

tweeted over the last half hour.

Saying, we settled the account with the murderers of Lucy, Maia and Rina. Adding, as is often the case with situations like this, it doesn't matter where you try to hide, we will find you.

And Yoav Gallant, the Israeli defense minister, also saying that as he promised to Leo Dee, Israel's defense establishment will reach any terrorist that harms our citizens.

And of course, tensions between Israel and the Palestinians remain incredibly high right now. We just saw just the other day that following the death of a member of the Islamic Jihad former spokesman on a hunger strike, in exchange of rockets from Gaza into Israel and is Israel's retaliation there. But all quiet for now there -- Bianca.

NOBILO: Elliott Gotkine for us live in Jerusalem, thank you.

Outrage in New York after a homeless man is put into a deadly chokehold by a fellow subway rider. What the witnesses say prompted the move and how the authorities are responding.

Plus, Serbia is reeling from a horrific school shooting reportedly committed by a 13-year-old. We'll go live to Belgrade, as investigators work to understand his motive.

And prosecutors for the special counsel are looking into the Trump organization's handling of the Mar-a-Lago surveillance footage. More on that development coming up next.

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(COMMERCIAL BREAK)

NOBILO: The suspected gunman in last week's mass shooting in rural Texas has been charged with five counts of murder. He is accused of shooting and killing five people including a 9-year-old at his neighbor's house on a Friday after they asked him to stop firing his gun so close to their house. The suspect's long-time partner is now facing a felony charge. Investigators say that she helped him evade police for days, giving him food and clothes and arranging transport to the house that he was later captured.

Serbia is also trying to come to grips with a horrific mass shooting. A very rare occurrence in the country. Police say that it was committed by a 13-year-old boy who shot and killed nine people in his elementary school in Belgrade on Wednesday. Officials say that the suspect showed no remorse and his motive is under investigation. His parents were also arrested. Serbia's president is now pushing for changes to the law to hold young criminal suspects in cases like this accountable.

For more, let's go to CNN's Fred Pleitgen. He joins us from Belgrave. Fred, I wonder how the country is feeling especially when there is this law in place that says someone can't be held criminally responsible until they're at the age of 14 especially when were learning more details and it seems that this attack was heavily premeditated.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Heavily premeditated and of course also very much pre-planned as well, Bianca. And I can tell you that this nation is absolutely devastated and very much sad and in mourning. In fact, let me get out of your way for a second here. And you can see that where one of the entrances here of the school, and you can see obviously the sea of flowers. A lot of people coming here lighting candles. A lot of people laying flowers as well.

And, you know, if you look at today, the media here in Serbia, but just see the people who are coming out to the school right now, many of them in tears. You can see just how devastated this nation is. And I think it has to do with the fact that this is something that is absolutely unprecedented here in this country.

In fact, one of the things that people we've been speaking to keep saying, is that normally they only hear about things like this from the United States. So, this is definitely something that's absolutely not something happens here. Despite the fact that gun ownership is actually quite high here in Serbia.

But you're absolutely right, there is also a lot of anger as the way all of this was done by the alleged perpetrator. The fact that it all seems to have been very well pre-planned. And the fact that because he's only 13, he's not actually criminally liable for it. That obviously is leading to a lot of discussion. That is mixing also with that anger and with that sorrow that the nation is feeling. Here's what we're learning.

(BEGIN VIDEOTAPE)

[04:25:00]

PLEITGEN (voice over): Horror inside a school classroom, a scene all too familiar in the U.S. but this is Serbia's capital, Belgrade. This is the deadliest mass shooting in the country in over a decade.

Moments after arriving at the prestigious Vladislav Ribnikar Elementary School, a 13-year-old student took out his father's gun and shot the security guard before turning it on pupils, according to officials.

VESELIN MILIC, BELGRADE POLICE CHIEF (through translator): There was one girl at her desk, another at the piano. He took their lives. Then he went out into the corridor to the history classroom. He went into the classroom and immediately shot the teacher and the students there from the door.

PLEITGEN (voice-over): According to eyewitnesses, the boy shot the female history teacher as terrified students hid under their desks. She was rushed to hospital along with six injured children according to CNN affiliate N1. The hospital's director detailed severe brain injuries and gunshot wounds to the legs. The perpetrator was arrested in the schoolyard and let out in handcuffs after he called the police himself and told them what he did.

I asked, where is my kid, says one girl's father, describing the moment he realized she was in the history class. She escaped, but when he found her, she was in shock, he says.

The crime had been planned for over a month. The teen had drawn a sketch of the attack that looked like something from a video game or a horror movie according to Belgrade's police chief. Locals told CNN the incident came out of nowhere.

UNIDENTIFIED MALE: This never happened in Serbia before, we only heard about this in news from the United States.

PLEITGEN (voice-over): Outside the school, these parents are the lucky ones. Their children made it out alive. But a nation is now in mourning and questions are asked over how this could have happened.

(END VIDEOTAPE)

PLEITGEN (on camera): And Bianca, that continues today. I want to show you that right now as we were in that TV report, a school class, a whole school class has actually come here to pay their respects. And that's really something that we've been seeing all morning here as well. Is that this nation is so devastated that schoolteachers are coming here bringing their entire classes to obviously show solidarity and obviously to show their sorrow as well.

And you know, we're just saying that in that report that there's a big discussion about -- right now here in this country about when children -- or when teenagers should be held criminally responsible for acts like this. And in fact, the president of the country Aleksandar Vucic, he came out last night and he called for the age to be decreased from 14 to 12. That obviously is too late for this case here and certainly doesn't do very much to console the people. But that discussion is going on, where at the same time you have the sadness and of course also the anger that something like this could have happened -- Bianca.

NOBILO: Fred Pleitgen, thank you so much. It's great to have you on the ground there to be able to communicate that solidarity and sorrow, seeing a lady lay followers behind you and there's small children too. Thank you so much. Fred like and for us in Belgrave.

A New York City subway rider dies after a fellow passenger put him in a chokehold. What witnesses say led to that incident and how the city is responding.

And a racist text message seems to be what pushed Fox News to oust Tucker Carlson. But it was far from the first time that the popular show host had embraced white nationalism. Details coming up next.

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