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Claudia Sheinbaum Poised to Win Mexico's Presidential Race as Per Preliminary Results; Trump Speaks to Media Post-Conviction; Hunter Biden begins Trial on Gun Charges; Ukrainian President Meets with Philippine Counterpart after His Shangri-La Dialogue Attendance; Simone Biles Captured her Ninth U.S. National Title for Gymnastics. Aired 3-4a ET

Aired June 03, 2024 - 03:00   ET

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

[03:00:00]

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ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world and everyone streaming us on CNN Max. I'm Rosemary Church.

Just ahead, Mexico's preliminary results are in and it looks like the beginning of an historic new era for the country who's been named as the projected winner of the presidential election. We will reveal.

And Donald Trump taking on his first media appearance since his historic criminal conviction, what he had to say about potential prison time.

Plus, there's a deal on the table for Israel and Hamas, but we're still waiting to hear whether both sides will agree on the terms, what the U.S. is doing to try to secure a ceasefire in Gaza.

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

CHURCH: Thanks for joining us. Well, preliminary results are in for Mexico's historic election and Claudia Sheinbaum is now projected to become the country's first ever female president. The former Mexico City mayor is a member of the ruling Morena party and a protege of the outgoing president, Andres Manuel Lopez Obrador.

And CNN's Gustavo Valdez joins me now live from Mexico City. Good to see you again, Gustavo. So an historic day in Mexico with the election of the first female president. What is the latest on Claudia Sheinbaum's projected win?

GUSTAVO VALDEZ, CNN CORRESPONDENT: Well, she has already thanked her followers and thanked the opposition candidates who she said already called her to congratulate her and concede defeat. So she's poised to become Mexico's first female president and the first president of Jewish descent. In her speech, she recognized that not everybody voted for her. So she

pledges to be a president for all Mexicans. You know, when we talk to voters during this weekend, they recognize that the chances of having a female president was high. So that was not the main factor for them to vote. What they told us they want to see is what kind of president is she going to be? They say they want to see her walk from under the shadow of Andres Manuel Lopez Obrador and become her own person.

She has said during her campaign that she would continue with the policies of Lopez Obrador.

But the Mexicans obviously agree with some of that, but they would like her to be not to be a puppet. They want her to be able to show who she is and lead the Mexicans in the next six years.

Public safety is going to be a priority. That's what everybody told us. They want to see change because the past few years have been very violent. Mexico is one of the most violent ones in the world.

So they want to see what she's going to do to change that, to get some control over the organized crime that Mexico has in many parts of the country. This was a very violent campaign. Over 30 candidates were assassinated.

So there's optimism from the voters. Obviously, they like what they saw on her. She's getting at least 58 percent of the vote, according to the National Electoral Institute, means that she will get a mandate.

And she's also going to have likely a majority of the state governors behind her and most of the members of Congress. So she should have an easy time governing without much opposition. Now, we just need to see who she's going to be for the next six years.

CHURCH: Indeed we do. Gustavo Valdez, joining us live from Mexico City. Many thanks for that report.

And earlier, I spoke with the acting director of the Wilson Center's Mexico Institute on how the incumbent Mexican president may impact his success as administration. Take a listen.

(BEGIN VIDEO CLIP)

LILA ABED, ACTING DIRECTOR, WILSON CENTER'S MEXICO INSTITUTE: This was very much an election for and about Claudia Sheinbaum, but it was also a referendum of current Mexican President Andres Manuel Lopez Obrador, who for the last six years have has sustained really high levels of approval rates, anywhere between 60 to 70 percent, which reflect the current percentage that Claudia Sheinbaum has won in Mexico.

Now, these are historic elections not only because more than 20,000 positions were up for elections, the largest in the country's history. But as you well mentioned, it is the first time that Mexico has elected its first female president.

[03:05:05]

Now, going forward, the big question surrounding a Claudia Sheinbaum administration is what role, if any, Andres Manuel Lopez Obrador will continue to play during her six-year term and what that means for her internally with the governing party.

The grip of power that Andres Manuel Lopez Obrador currently has over the governing party may look very different under a Claudia Sheinbaum administration. We have to remember that Andres Manuel Lopez Obrador founded Morena, and in essence he is Morena. And so the way that the governing party reacts to Claudia coming into power is going to be increasingly interesting to monitor.

And we have to wait and see the composition of Congress. I think whether the majority party is able to attain a supermajority will really dictate how much Claudia Sheinbaum will be able to achieve in the next six years.

CHURCH: Right. And of course, projected to win, Claudia Sheinbaum faces many challenges, including tackling public security and safety concerns, perhaps the top concern here, organized crime, energy and immigration. How will she deal with those challenges?

ABED: When we look at her 100 government plan, her political platform, there are several areas where she differentiates herself from Andres Manuel Lopez Obrador. And I think that's the other great mystery about the Sheinbaum administration is how much will she continue building on Andres Manuel Lopez Obrador's political platform, which essentially brought her not only to the candidacy, but to power and in which areas she might break away from her predecessor.

In looking at her political platform, there are three areas specifically that she outlines where we could see potential change. The first one is in the energy sector, where, you know, her scientific background and environmental engineering degree has pushed her to state that she looks to foreign direct investment in clean and renewable energies in Mexico, something that's very different from sort of the fossil fuels and dirty energy that AMLO has, you know, pushed forward during his administration.

On the security front, there seems to be a potential change in terms of AMLO's hugs-not-bullets strategy and what Claudia wants to do in terms of strengthening intelligence and information gathering to combat transnational criminal organizations that have taken control of a vast area of Mexican territory.

And then on the last point, there is a potential shift in foreign policy in regards to the relationship specifically with the United States, given that the issues of migration, security and commercial ties between both nations will be determined not only by Claudia Sheinbaum's success today, but also who will win the White House in November.

(END VIDEO CLIP)

CHURCH: Former U.S. President and now convicted felon Donald Trump says he'd be okay with serving prison time. This comes just days after he was found guilty of all 34 charges in his hush money criminal trial. But as he awaits sentencing on July 11, the Republican candidate for president is reflecting on calls to put his former rival Hillary Clinton behind bars and warning that a harsh punishment for him would be too much for his supporters to bear.

(BEGIN VIDEO CLIP)

DONALD TRUMP, FORMER U.S. PRESIDENT: There was a lot of it and I felt and I could have done it. But I felt it would have been a terrible thing. And then this happened to me. And so I may feel differently about Hillary Clinton, I didn't say lock her up, but the people don't say lock her up, lock her up. Okay, then we won. And I say and I said, pretty openly, I say, All right, come on, just relax. Let's go. We're gonna make our country great. I don't know that the public would stand it. You know, I don't, I'm not sure the public would stand for it. With a--

PETE HEGSETH, FOX AND FRIENDS WEEKEND HOST: A house arrest or --

TRUMP: I think -- I think it would be tough for the public to take. You know, at a certain point, there's a breaking point.

(END VIDEO CLIP)

CHURCH: New polling reveals most Americans agree with the hush money verdict. A CBS News YouGov poll released Sunday finds 57 percent of Americans think the jury reached the right decision.

Joining me now from Charlottesville, Virginia, is Larry Sabato. He is the director for the Center of Politics at the University of Virginia and editor of the book, "A Return to Normalcy?: The 2020 election that (almost) broke America." Always great to have you with us.

LARRY SABATO, DIRECTOR OF CENTER FOR POLITICS, UNIVERSITY OF VIRGINIA: Thank you, Rosemary.

CHURCH: So what has been the major fallout from Donald Trump's historic conviction on 34 counts of felony business fraud in his hush money trial? And how might being the first convicted felon running for president shape the way voters cast their ballot? Does this help or harm his chances of being elected in November?

[03:09:53]

SABATO: Of course, it will change over time. But the immediate reaction and the first three or so measuring of public opinion have somewhat surprisingly shown that, contrary to what people thought, that it wouldn't have any impact. It has had an impact and it's not favorable to Donald Trump.

Now, this will come as a surprise to many Republicans who have rallied to his support and done what they usually do, backed him, especially the public officials.

But you see, the independents in particular have been repulsed by the convictions and by what they learned about Donald Trump during the trial. And they seem much less likely to support him or, if they back him, to do so enthusiastically. Many want him to drop out of the race.

Now, it won't surprise anybody that Democrats feel that way. But independents, a clear majority of them, pretty much chime in with the Democratic point of view. Republicans were unchanged for the most part, though about 15 percent of Republicans, which is very near the percentage that Nikki Haley has been getting, even though she's dropped out of the race. That's about what she's been getting. And it would suggest that some of those people voting for Nikki Haley perhaps are less inclined to vote for Donald Trump now.

CHURCH: And, Larry, what are all the relevant polls for swing states specifically signaling to you at this juncture?

SABATO: Well, we haven't seen the swing state polls post-trial. Be interesting to see if they follow the national pattern. I suspect they will, at least Michigan, Pennsylvania, and Wisconsin. They seem to be closer to the national average this year.

So we'll have to watch them carefully. But there's no reason to think they're not having the same reaction. And Donald Trump really isn't helping himself. He's strengthening himself at the base because of all the language he's using, portraying himself as a martyr, as we would expect. But for people outside the Trump base and outside the Republican Party, this is not an attractive picture of Donald Trump.

CHURCH: And, Larry, on June 27th, CNN will host the first of two campaign debates in this studio. In actual fact, they were agreed to by President Joe Biden and former President Donald Trump. And in this first face off, voters will, of course, be looking for a president who can make their lives better when it comes to inflation, immigration, abortion rights, law and order. So what do voters need to see on that night and how do these two men garner more support?

SABATO: They'll practice forever, Rosie, as you know. They'll have umpteen practice sessions. At least Biden will. You never know what Trump is doing on the practice scene. But they'll know what to say. They'll have their soundbites ready. Trump is more extemporaneous in his approach.

Of course, they're going to cover the substantive issues because they're going to be asked about the substantive issues by the two CNN moderators.

Beyond that, Trump is not going to be able to avoid talking about the trial, nor is Biden going to be able to avoid talking about the trial because they'll be asked about that, too. I don't know how they're going to lower Trump's voice and get him to be less defensive and attacking the judge and the other parts of the judicial system less than he has been doing because that is also not attractive.

CHURCH: And Larry, a big question being asked that I want to put to you, which candidate poses the bigger threat to this country's future, do you think? SABATO: Oh, in my mind, there's absolutely no question. It's Donald

Trump. As Liz Cheney of the January 6 Commission, now an ex- Congresswoman but clearly still a leader in trying to help people understand what a second Donald Trump term would mean, as she has said repeatedly, there's a real question about whether we will have future elections, at least timely ones, under rules that are fair.

This is something that ought to concern everybody. I'm sure by election time it will. It's not going to sway Republican votes, but I think it will sway independent votes in the tiny percentage, maybe 4 to 6 percent, who really can be switched, who can go back and forth between these two candidates or be persuaded to vote for or against the third-party candidates or can be convinced to vote who plan currently not to vote.

CHURCH: Larry Sabato, always appreciate your political analysis. Thank you so much for joining us.

SABATO: Thank you, Rosemary.

CHURCH: The U.S. Secretary of State spoke with two Israeli ministers on Sunday. Antony Blinken assured Yoav Galant and Benny Gantz that the Israeli peace proposal announced by U.S. President Joe Biden would, quote, "advance Israel's long-term security interests". Here's more now from the U.S. National Security Spokesperson.

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JOHN KIRBY, WHITE HOUSE NATIONAL SECURITY SPOKESPERSON: Where we are right now is that proposal, an Israeli proposal, has been given to Hamas. It was done on Thursday night, our time. We're waiting for an official response from Hamas. We would note that publicly Hamas officials came out and welcomed this proposal. We have every expectation that if Hamas agrees to the proposal, as was transmitted to them, an Israeli proposal that Israel would say yes.

(END VIDEO CLIP)

CHURCH: Meantime, the Norwegian Refugee Council tells CNN that humanitarian aid work in Gaza is basically coming to a halt. Aid is running out and trying to operate in Gaza is getting more dangerous, especially since Israeli troops pushed into Rafah.

CNN's Paula Hancocks joins us now from Abu Dhabi. Good to see you, Paula. So what is the latest on the proposal to end the war in Gaza and what's Israel and Hamas saying about it?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Rosemary, at this point, we are waiting for a definitive response from Hamas and also, in some cases, from Israel as well. Although this was an Israeli proposal back on Thursday of last week, we understand this was handed indirectly to Hamas.

We have also been hearing from Israeli officials over the weekend. The prime minister's office, for example, said that this deal would go ahead as long as there were certain conditions that were met.

They are the conditions that Benjamin Netanyahu has consistently been saying to make sure that Hamas is not able to be a threat to Israel in the future, that there's no threat coming out of Gaza and that the hostages would be released.

Now, we did hear from the U.S. President Joe Biden on Friday when he publicly endorsed this plan and pushed this proposal forward, saying that he believes that Hamas has been, it is in a position now that it wouldn't be able to stage an attack the likes of October the 7th. So its capabilities have been downgraded. So really addressing one of the key concerns from Israel there, the prime minister had been saying he wanted Hamas completely destroyed, something which many questioned from day one, really, a very difficult, if not impossible, to achieve.

When it comes to what we've heard from Hamas, they initially were positive. We did hear in a statement that they positively viewed this proposal and that they would be responding constructively.

We are waiting to hear what that exact constructive response will be at this point. But we know that there have been a flurry of phone calls over the weekend, the secretary of state, for example, calling his counterparts in Qatar, one of the key mediators in Egypt, again, a key mediator that is able to try and put pressure onto Hamas to go forward and to accept this proposal.

But when it comes to Israel, there is resistance within Benjamin Netanyahu's own coalition.

There are far-right ministers within his coalition who have said that if he does agree to a ceasefire before their conditions are met, and they see that as destroying Hamas completely, then they would leave the government. They would step down, which, of course, would cause significant political problems internally for Israel.

So there are many different elements to convince at this point. It does appear, though, as though the U.S. is viewing this favorably, saying that they believe this plan, this proposal is very close, in fact, almost identical to a plan that Hamas had been suggesting as well. So they're hoping there's very little distance between the two sides now. Rosemary.

CHURCH: We'll be watching this closely. Paula Hancocks, joining us live from Abu Dhabi. Many thanks.

Well, meantime, New York held its annual Israel Day parade on Sunday amid heightened security. Officials were concerned about possible violence after recent clashes between protesters and police in the city. New York congressmen and families of American hostages held in Gaza called for their release during the parade. One of the organizers says more than 60,000 people showed up, some chanting bring them home now, and others holding signs of support for the new peace proposal.

Coming up next, how California firefighters are working to control a fast spreading grass fire with some help from the weather. Plus, big changes ahead for South Africa's ANC. The party of Nelson

Mandela has lost the parliamentary majority it held for decades. We'll have a live report from Johannesburg just ahead.

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CHURCH: Welcome back, everyone. A grass fire in Northern California has burned through 14,000 acres or more than 5,600 hectares. The corral fire started Saturday in a city near San Francisco and the California Department of Forestry and Fire Protection says it's now 50 percent contained.

Officials say weather conditions have improved and made it easier for firefighters to get a handle on the flames. With winds lightening up and temperatures dropping, still residents closest to the fire have been ordered to evacuate the area.

Extreme heat could also be an issue for parts of California in the coming days and that threat extends throughout the U.S. southwest. Excessive heat warnings will be in effect for areas in Central California Wednesday and Thursday. Residents there are being advised to watch for signs of heat-related illness. Parts of Nevada, Arizona and New Mexico are also on alert, with possible temperatures well over 100 degrees Fahrenheit or 38 degrees Celsius.

Well states further north have a different issue to worry about. An atmospheric river is expected to produce heavy rainfall over the Pacific Northwest through Tuesday.

[03:25:04]

Flood watches have been issued in parts of Washington and Idaho, with some areas expected to see up to six inches or more than 15 centimeters of rain. The National Weather Service is also warning that the runoff from melting snow in the mountains could make flooding worse.

The results of South Africa's elections are in and the African National Congress has lost its majority for the first time since the end of apartheid's white minority rule. The ANC won just 4 percent of the vote. Now the party of Nelson Mandela must form a coalition government to stay in power. They have two weeks before the new parliament convenes to select a president. If no coalition has been formed by then, new elections must be held.

So let's turn to Senior International Correspondent David McKenzie. He joins us live from Johannesburg. Good to see you again David. So, how difficult it will be if the ANC to pull together a governing coalition by the deadline?

DAVID MCKENZIE, CNN SR. INTERNATIONAL CORRESPONDENT: I think it's going to be challenging because you have factions within the ruling ANC, Rosemary, that will be having a very different viewpoint of what should happen in the political future of this country in the next few weeks.

On one hand, you have people who are likely trying to avoid corruption charges and want to move in a direction which they might selfishly avoid those charges. On the other hand, you might have some people who are worried about the investment climate in this country. All of it is uncharted territory. As the saying goes, President Ramaphosa did give a magnanimous speech despite the drubbing of his party at the polls.

(BEGIN VIDEO CLIP)

CYRIL RAMAPHOSA, SOUTH AFRICAN PRESIDENT; Our people have spoken. Whether we like it or not, they have spoken.

(END VIDEO CLIP)

MCKENZIE: Now Ramaphosa and the ANC have said that the rule of law, the constitution is paramount in this case. The various opposition parties have largely said they might consider a ruling coalition to run South Africa. The ANC has just been such a defining force in the politics of South Africa since 1994 and of course before that.

This election, you know, some of the polls did suggest this kind of outcome, but it really is quite shocking to many pundits that they garnered only just above 40 percent of the vote, 17 percent or so drop from the last election. One of the key factors here is former President Jacob Zuma and his upstart party that really had made huge inroads in particularly one province, KwaZulu-Natal.

Now there will be a significant meeting of the ANC on Tuesday. We might get some sense of how they are thinking this should move along, but really they are not entirely in the driver's seat, Rosemary, because of the fact they have lost so many votes. They won't be able to dictate the terms of any coalition or informal agreement.

I think investors, South Africans, politicians from both bigger and smaller parties are going to watch extremely closely how this plays out and many are hoping for a level of political maturity that at least some politicians in the past haven't shown in the South African context. Rosemary.

CHURCH: All right. David McKenzie, joining us live from Johannesburg. Many thanks for that live report.

Well, it's more history in the making as the first child of a sitting U.S. president goes on trial. The charges against Hunter Biden and the punishment he could face if convicted. That's next on CNN.

Plus Ukrainian President Volodymyr Zelenskyy is pleading with the U.S. to give defense forces more latitude to fire U.S. weapons into Russia. How the U.S. is responding. That's next.

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(COMMERCIAL BREAK) ROSEMARY CHURCH, CNN ANCHOR: Welcome back to "CNN Newsroom". I'm Rosemary Church. I want to check today's top stories for you.

Humanitarian aid work in Gaza is basically coming to a halt. That's according to the Norwegian Refugee Council. Aid is running out and trying to operate in Gaza is getting more dangerous. This comes after the U.S. Secretary of State spoke with two Israeli ministers on Sunday. Antony Blinken assured Yoav Gallant and Benny Gantz that the Israeli peace proposal announced by U.S. President Joe Biden would, quote, "advance Israel's long-term security interests".

Much of the U.S. Southwest is bracing for extreme temperatures this week with excessive heat warnings and watches in place. Some areas could be well above 100 degrees Fahrenheit or 38 degrees Celsius. Residents are being urged to drink plenty of fluids and limit time outside.

Claudia Sheinbaum is projected to win Mexico's historic election and become the country's first-ever female president. The former Mexico City Mayor is a protege of the outgoing President Andres Manuel Lopez Obrador. The elections overall were the largest in Mexico's history, with more than 20,000 positions on the ballot nationwide. But the lead-up to Sunday's vote was plagued by assassinations and political violence, and some polling stations were plagued by long lines and delays.

U.S. President Joe Biden's son will go on trial on felony gun charges in the coming hours. Hunter Biden is accused of illegally buying and possessing a gun while abusing or being addicted to drugs. He has pleaded not guilty, but has been open about his struggles with alcohol and crack cocaine addiction.

The case was brought by a former U.S. attorney appointed by Donald Trump. If convicted, Hunter Biden would face up to 25 years in prison. But it's unlikely he would get such a lengthy sentence, given that he has almost no criminal record. This is the first time the child of a sitting U.S. president will go on trial.

Mr. Biden will be hitting the campaign trail in Connecticut in the coming hours. The next day, he heads to France with the First Lady to attend ceremonies to mark the 80th D-Day anniversary. Mr. Biden is also set to hold talks with French President Emmanuel Macron during his visit. CNN's Priscilla Alvarez has more now from Washington.

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PRISCILLA ALVAREZ, CNN CORRESPONDENT: President Biden heads to France this week where he will commemorate the 80th anniversary of D-Day and also deliver remarks about freedom and democracy. All of this as the U.S. tries to reassert its leadership on the world stage.

But it also comes at a critical time here at home, as President Biden has made preserving democracy a key theme of his campaign and recently told donors at fundraisers that world leaders have expressed concern to President Biden over his Republican rival, former President Donald Trump, taking a second term.

Now, President Biden, while abroad, will also meet with the French President. The two are expected to discuss a range of issues, including that proposal that was recently laid out by President Biden to reach a ceasefire agreement in Gaza. Now, the French President recently said that he supports that agreement and also noted that the war in Gaza must end. So, this too expected to be a topic of discussion between the two leaders.

Priscilla Alvarez, CNN, Washington.

(END VIDEOTAPE)

CHURCH: Ukraine's president is continuing his Asia-Pacific trip with a visit to the Philippines and a meeting with the country's president. Volodymyr Zelenskyy is making personal appeals to leaders in the region to attend the upcoming Ukraine peace conference in Switzerland.

During his trip to Singapore, Zelenskyy also met with U.S. Defense Secretary Lloyd Austin. He thanked the U.S. for giving limited permission to fire U.S. weapons into Russian territory, but says Washington needs to lift more restraints so Ukraine can properly defend itself from Russia's constant attacks on Kharkiv. As if to prove his point, Russian airstrikes in the Kharkiv region killed one person and injured two more overnight. Ukrainian officials say a recreation center was struck in that attack.

CNN national security correspondent Natasha Bertrand joins me now from Singapore. So, Natasha, Mr. Zelenskyy says he's grateful for U.S. permission for limited airstrikes inside Russia, but he's not entirely happy, is he, with those limitations. He wants the ability to strike further afield. So, bring us up to date on what was an important visit for the Ukrainian leader.

NATASHA BERTRAND, CNN NATIONAL SECURITY CORRESPONDENT: That's right. So, Secretary of Defense Lloyd Austin, he actually met with President Zelenskyy yesterday and they discussed this very thing. I mean, for the most part, Zelenskyy has expressed deep appreciation for the United States' decision to allow Ukraine to use American-made weapons to strike into Russia at all.

But for now, it is only limited to just across the border from Kharkiv in Ukraine into Russia, where Russia has been launching missile attacks onto the city from, and Ukraine says that it's going to better allow itself to defend itself, something that Secretary Austin echoed in a press conference earlier today.

But still, he told reporters that right now the U.S. policy has not changed, that they do not want to see Ukraine firing long-range American weapons, including those ATACMs systems, deep into Russia. They don't want to see the conflict escalate to that degree, don't want to see, of course, Ukraine striking deep into Russia itself.

And so for now, that policy remains extremely limited, really, to allow Ukraine to defend itself in that small area. But President Zelenskyy, of course, he has said that, you know, in order to defeat Russia, in order to defeat Vladimir Putin, the international community needs to not be afraid of him and needs to not show weakness, but rather strength.

But still, Secretary Austin earlier today, he did say that this is going to make a huge difference for the Ukrainians in order to defend themselves against these strikes. And he said, importantly, that the Russian advances in Kharkiv, they have slowed because they have run into Russian defenses.

Now, Secretary Austin also met, importantly, with the Chinese defense minister here in Singapore just a few days ago, and he raised the fact that the U.S. believes that China is actively supporting Russia in its war in Ukraine. And he underscored that the Chinese could face consequences from the U.S. and the international community if they continue to do that.

But Zelenskyy, for his part, he was unable to secure meetings here in Singapore with Chinese officials. He has been trying to get them to come to a peace summit that Ukraine is hoping to hold in the next two weeks in Switzerland. It does not seem like that's going to happen. But importantly, he did secure the participation of one key Asian partner, and that is the Philippines, where he just earlier today, Rosemary.

CHURCH: All right. Our thanks to Natasha Bertrand joining us live from Singapore with that report.

North Korea says it's suspending its barrage of trash balloons against South Korea, but Seoul is threatening a response regardless. And we will have the latest on the growing tensions in a live report.

[03:40:01]

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CHURCH: Welcome back, everyone. South Korea says it may suspend a landmark military agreement with North Korea over the recent barrage of trash-filled balloons sent across the border by Pyongyang. North Korea claims it's halting that operation for now. The South Korean military has reported about 1,000 of the airborne waste deliveries floating into the country since last Tuesday, littering places with things like cigarette butts, paper and pieces of cloth.

More now from CNN's Mike Valerio. He joins us live from Hong Kong. Good to see you, Mike. So because of this balloon imbroglio, there's word of a pretty sensitive military agreement between North and South Korea now apparently in trouble. What are you learning about this?

MIKE VALERIO, CNN CORRESPONDENT: So, Rosemary, you know, that's absolutely right. And this is just developing within the past few minutes. So we start with that to just convey to people who may live outside of the Koreas or may live very far from the region who are thinking, you know, this is a pretty weird and unusual, bizarre story.

But, Rosemary, this could potentially be leading to significant real- world ramifications beginning with this military agreement that could be in trouble. So essentially what we're dealing with here is an agreement, the deal that was made in September of 2018 with both militaries from North Korea and South Korea essentially deciding to pull back ever so slightly from the midpoint of the DMZ in the name of building trust. Now South Korea having to deal with these nearly thousand balloons landing on its territory is saying the trust that we were trying to build, well, it's not there anymore.

So Rosemary will know tomorrow whether or not the South Korean cabinet decides to throw this agreement out, which could lead to heightened tension. So that's the diplomatic sphere of everything that's happening.

[03:45:01]

But, you know, the human level, if you live in Seoul, this megalopolis of greater Seoul, 26 million people, you've seen a lot, but you haven't seen something come down from the sky, a trash balloon from North Korea landing on your car, landing on your local school property, hazmat teams from the military coming to inspect what has landed.

Just listen to two lovely individuals who spoke with our team over the weekend. Here's some of their impressions.

(BEGIN VIDEO CLIP)

SONG KWANG-JA, YONGIN CITY RESIDENT (through translator): I had goosebumps. It felt like a childish prank. I was surprised to hear about it.

KIM MIN-HEE, YONGIN CITY RESIDENT (through translator): Why are they sending things like this? I'm worried that they might send something dangerous.

(END VIDEO CLIP)

VALERIO: I mean, that could be the understatement of the afternoon right there. So where do we go from here? As you mentioned, the North has said, you know what, we're going to press pause on this campaign. We were trying to make a point, but there are other humanitarian groups, Rosemary, who have sent balloons to the North before with flash drives of videos like K-dramas, K-pop albums, pictures of what it's like to live in South Korea. These groups are saying, you know what, we're going to keep flying these balloons to the North because this seems to have hit such a nerve with North Korea. So this drama could be far from over, Rosemary.

CHURCH: I will continue to keep an eye on this. Mike Valerio, joining us live from Hong Kong with that report. I Appreciate it.

Well, hunting whales commercially has long been a controversial subject, but Japan has continued the practice even amid a decline in demand for whale meat. One Japanese company has invested millions of dollars to build a massive vessel to re-energize the industry. The ship is longer than an American football field and has technology capable of alerting crews of whale pods far away. Activists still consider the profession inhumane and warn Japan may be trying to hunt beyond its normal fishing grounds.

Inflation has dealt a heavy blow to the Cuban peso. Some residents can't afford the cost of milk or eggs and others can't even get the cash sitting in their own bank accounts.

CNN's Patrick Oppmann has more now on Cuba's deepening economic crisis.

(BEGIN VIDEOTAPE)

PATRICK OPPMANN, CNN CORRESPONDENT (voice-over): In a country of seemingly endless lines, these are perhaps the most frustrating. People waiting to get money, their money, at government-run banks. The lines are long and there's no guarantee that by the time they get to the front there will be any cash left.

We've been here for an hour, she says, and haven't been able to get inside yet. Sometimes you do the line and they don't have enough money.

Despite government attempts to move transactions online, cash is still king in Cuba and there isn't enough of it.

OPPMANN: Many banks limit how much cash people can take out and the largest bill that the government prints is this one, 1,000 pesos. At the official rate that's about $40, but in the black market it's only worth about three.

OPPMANN (voice-over): Runaway inflation has inflicted further pain on the already ailing Cuban economy. Lately government-run banks no longer allow foreign companies to withdraw dollars or euros either, saying they simply don't have any on hand. The Cuban government blames the crisis on the U.S. government's economic sanctions and murky plots they allege to make record inflation and shortages even worse.

But Cuban journalists tracking inflation from abroad say much of the country has lost faith in their banking system and currency.

There is no production in Cuba, he says. Production in the country has collapsed, the country is bankrupt.

And Cubans like retiree Nancy complain that even when the peso regains some value against the dollar, the prices stay the same or still go up.

I don't earn enough each month, she says. I receive 7,000 pesos, but a packet of milk is almost three thousand pesos. A carton of eggs, the same price. I'm not getting by at all.

Some economists think Cuba needs to devalue its currency officially or adopt the U.S. dollar. But as the island confronts the worst economic crisis in decades, both money and time may be running out.

Patrick Oppmann, CNN, Havana.

(END VIDEOTAPE) CHURCH: The 80th anniversary of the D-Day invasion is fast approaching. Surviving veterans are arriving in France ahead of celebrations. Their story and much more, coming up here on CNN.

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[03:50:00]

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CHURCH: Thursday marks the 80th anniversary of the D-Day invasion of World War II when 160,000 allied troops stormed the beaches of Normandy. It was the largest seaborne invasion in history and France is going all out for its memorial this year. It's hosting a grand commemoration featuring world leaders and more importantly, veterans who survived that bloody day.

Michael Holmes has our report.

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MICHAEL HOLMES, CNN ANCHOR AND CORRESPONDENT (voice-over): A hero's welcome. More than 60 World War II veterans arrive in France ahead of the 80th anniversary of D-Day this week. Many over the age of 100 having lived a lifetime since serving their country. But the gratitude for those who fought and died on those fateful Normandy beaches is timeless.

On the 6th of June 1944, more than 150,000 allied troops landed on the beaches of France under heavy fire from Nazi Germany's forces. The fighting intense, more than 9,000 allied soldiers killed or wounded. But it was a turning point in the war.

Eight decades later, these men and women, some who fought in Europe, others in the Pacific, know firsthand the sacrifices made on that day and the days to follow.

[03:55:04]

BILL WALL, WORLD WAR II VETERAN: I was in it from the beginning. I lost some great friends, and all of those people out there on their crosses, and I'm not afraid of the true heroes.

HOLMES (voice-over): But for one veteran and his companion who arrived in France ahead of the others, it was a bittersweet trip and a chance for a new beginning.

UNKNOWN: It's just such an experience for us and we're very happy and very much in love.

UNKNOWN: Oh, by the way, we're getting married in France.

The leaders of France, the United States, the U.K., Canada and Germany will attend the anniversary ceremonies on Thursday. In the past 80 years, the world has changed. Presidents, prime ministers and chancellors have changed. But some of the surviving members of the greatest generation are still here, keeping watch for a grateful nation.

Michael Holmes, CNN.

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CHURCH: Another huge win for American gymnast Simone Biles as she won a record ninth all-around national title at the U.S. Gymnastics Championships. She dominated the two-day event, turning in top cumulative scores in four key routines, finishing strong on Sunday. The national championships are the final event for U.S. gymnasts before the Olympic trials in late June. Biles, who took a two-year break from the sport to focus on her mental health, is eyeing a spot on the team for Paris.

And thanks so much for your company. I'm Rosemary Church. Have yourselves a wonderful day. "CNN Newsroom" continues next with Max Foster.

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