>> hello, and welcome to all of you watching us here until the united states and canada, ahead on cnn newsroom, millions of people in the united states are starting their weekend under threat of severe we are at the scene of one lady strike.

mismanagement in the supervision led to the collapse of two banks. what could fall in the days ahead. >> live from cnn, this is cnn newsroom with kim brunhuber. >> we begin this hour with extreme weather ahead for most of the country. more than 20 million people are under threat for severe storms across the southeast. two rounds of strong thunderstorms are expected to cross florida and southern georgia today. when this afternoon, the second overnight. the main threats will be damaging wind, hail. in texas, dozens of reports friday, reporting golf-ball- sized trailed 39 hail . it went for several minutes, but likely never will measure, also a

possible tornado in palm beach county. nudges wind and hail, the mississippi river continues to rise, flooding many communities around the banks. the water has already crested in some. here is the latest. >> as the river level rises, anxiety is also going up for business owners here in iowa. you can see where the partridges are -- the embankment of the river. you can see the water has over loan, flooding this entire downtown area across the area. people are taking steps to mitigate the damage. >> is part of the downtime of davenport. we fled all the time. i don't know. they won't put a flood wall up, thinking everyone will look at

the river. is enough. >> that was claudia anderson. she -- the phoenix. some are working overtime to remove water flooding into her business calls by the back of sewer systems. meanwhile, the river isn't expected to crest until sunday or monday. adrian, cnn davenport iowa. >> those in california are preparing for flood weekend, as well. close over flooding concerns. the park remains closed on wednesday, but it could be close longer. officials are also preparing for floods, gavin newsom visited . >> you can look at a scene like this and think the worse is behind us.

>> moore prevents itself here. not only did we need to maintain our -- the impending floods and damage that will occur here. >> the agricultural products can be lost in california's department of food and agriculture. department of representatives are pushing for a disaster relief package. earlier, spoke with congresswoman -- of the house committee of how the severe weather could impact american's ability to put food on the table. here it is. >> california produces 98% of the processed tomatoes. you know, that is tomato sauce for pasta, for pizza, all those wonderful things we enjoy. 85% of the citrus. we are still

trying to determine how the oranges, mandarins, how they've been impacted. 75% of the world's pistachios, 20% of all the milk product for the united states is produced in california. we are the number one agricultural state, people tend to forget that. over 300 crops that we grow. we will find that impact in the grocery store, in our favorite restaurants and fast food place. we don't know what the totality of that will be at this time. we are trying to make a determination so that we can try to mitigate for those losses. ♪ ♪ >> race to save lives of three massive russian missile strike in ukraine. rescuers are trying to reach

two children who are believed to be trapped inside the building. 17 of the victims have already been addressed you, which has partially collapsed by the striking that left at least 21 people dead, including five children. two men people died in a separate attack. covering developments in ukraine from all angles. nick robertson is standing by near the site while saul is keeping an eye on ukraine's expected counteroffensive. nick, watching your reporting, was the race to save lives? >> yes, the recovery is still underway. i think this is more recovery than -- you can see them sort of peaking up near the floors here. they are clearing the rubble up there. they are more than 30 hours and go for this operation, able to identify walmart person.

i would ask you to pan across over here. you would see police officers taking notes from people whose apartments were destroyed. bringing together evidence information that can protect the bees later, potentially part of a war crime investigation about everything that happened. this recovery answers mission -- and search mission has been underway for more than 30 hours. >> a russian missile ripped through their apartments. in the central ukrainian city on the scene fast. he was one of the first. >> there were terrible screams of children. houses started to shake in the local areas. a woman was put in the evidence, but she died at the hospital.

>> the death toll climbing through the day. this lady telling us she heard the missile, put her kids in the bathtub, and pillows over their heads, hoping they would live, and fighting back tears, she said so many people lived here. a gaping concrete and rubble rune where those lives were shattered, families and friends desperately awaiting news of loved ones. this lady, telling us her friend on the eighth floor survived, but the two debtors -- daughters, the other, just seven, are still missing. a firefighter takes us up to see those top floors. onto the roof, nine floors above the recovery teams. >> you can see how the building has literally collapsed here.

they should be building right out here from the floors. a riff, tipping over from there. >> from here, the damage even more devastating than below. more than half of the buildings 46 apartments are destroyed. >> so the firefighters will come up here. in this dangerous mission here, literally putting themselves in danger to try to recover, clear up the site. >> ukrainian officials believe all of this devastation, caused by a single russian kh 101 south cruise missile. it is the single deadliest strike on civilian since january. 109 people registered living here. many of them, still unaccounted for.

>> officials aren't saying how many people they are still searching in the rubble, but a lot of people around here, neighbors say that they believe there are at least two children still stuck in the rubble up there. why this is taking so long, because each new floor that the firefighters get into, they had to pause because it potentially opens to restart the fire. this is not just as simple as going to rubble that is a potential for fires to start again. i'm looking out around here on what they are going to find. >> yeah, just tragic. things with the excellent reporting there on the scene. nic robertson, i appreciate it. while the many eyes are on these russian attacks, a lot of the focus is on the counteroffensive. what is the latest? >> we have been talking about this for months. these forces would ramp up their attacks, their push along the eastern front line. we did

get an update from the defense minister, spending hours that the preparation for that counter fences are coming to a close. support into support in recent months coming in the form of routines. there has been this lightning speed population process if you will to get ukrainian soldiers trained up on those trains and trained up on those media weapons. it may not be enough to start this counteroffensive for now. they are outgunned by russian forces. we have seen them struggle. this is a quote from a senior adviser speaking to -- last night. take a listen.

>> for ammunition to start the counter auxiliary battle fight. then using your manpower, and they need more vehicles and tanks, which we were starting to receive from the western states, the european states, and this is also another component. a very necessary component. without each, we would not be able to start the counteroffensive. with this, firing the front line , we need more. we need air defense systems. >> i think the message there from ukraine is very clear. send us more weapons. we need more help. that is exactly what they have been doing. some 98% of those vehicles promised, there have been tanks promised. ukraine needing absolutely more.

that is what you heard from that official there. they also had to write out across the country where places are having these missile strikes where families are caught in the crossfire. again, they are facing this conflict from every border of ukraine. >> meanwhile, the man who started the war, vladimir putin, it -- from territories illegally next from russia if they are deemed , quote, a national security threat. those who haven't taken russian citizenship will be recognized as foreigners and could be expelled. living in these areas without a passport would have to apply for a permit, and provide documents

translated into russian. a ukrainian government adviser responded on twitter, writing, quote, the process of changing the composition of these is taking place. this is an obvious ministation -- the u.s. state department says it is, quote, deeply disappointed. -- has been denied. he is a reporter for the wall street journal and was detained in russia a month ago on espionage charges. the request was denied by the russian foreign ministry, which says it was in response to washington not providing you for russian journalists. it may take additional diplomatic steps to get access, and fellow american detainee, paul willard. pope francis has wrapped up. meeting with children, refugees, and the poor.

this is top on his agenda. on friday, meeting with the prime minister at the presidential palace. urging the hungarians to accept migrants and refugees. largely opposes accepting migrants and refugees from the middle east and africa. he has also angered many in europe for refusing to back military aid for ukraine. quoted a letter by the popular saint stephen to emphasize his point to accept all migrants. >> i urge you to show favor, not only to relations in canada, to the power and wealthy, or to your neighbors. also to foreigners and i will come to you. i urge you to welcome strangers and hold them in esteem so they prefer to be with you, rather than elsewhere. that was saint stephen. >> saudi arabia is stepping up efforts to evacuate people from the fighting in sudan. next, taking you to the --

refugees to safety. lawmakers will to raise the debt limit, but the fight is an over , as long as the democrats control the senate. please stay with us. ♪ ♪

the latest cease-fire in sudan is now marked with more reports of fighting. the rapid support forces accuse each other of violations. this is as the isf says it controls 90% of the state. fighting has also increased in sudan's west region with ethnic clashes. basic necessities like food, water and medicine are in short supply across the country. united nations has more than 2000 people that have already fled to neighboring countries while the others are unable to escape the fighting. a navy vessel appears to bring more evacuees. let's begin with the cnn senior africa senator who is live. what is the latest on the fighting and conditions for those who haven't been lucky

enough to leave? >> yes, kim. the fighting, another cease- fire broken. another day, another cease-fire not adhered to. the fighting has been reported in the capital. in some places, mostly because some can afford to. some of these journeys are very, very dangerous. like you said, 50,000 people have fled sedan to places like egypt. we spoke to one woman who described the horror and the terrible circumstances that people face making this journey. take a listen to what she had to say. >> assault elderly people who which is having to wait in the boiling hot heat for the process.

there was so many people there. they couldn't sit down. it is broke my heart. there wasn't any humanitarian assist there either. >> yes, that is what people are asking. where is the humanitarian assistance? asking if people can be taken up to the country, what can the medical supplies and things like this come in? forced to evacuate because of the heavy fighting. very few medical supplies, or access to medical assistance. this is as heavy fighting goes on with many people being wounded and killed in these attacks. it really is a desperate situation all around for people in sudan right now, kim.

>> thank you so much, stephanie. over to larry. larry, you are at the port of jeddah. i see many people behind you, where exactly are you and what are you there? >> kim, this is a commercial ship that just arrived here in the port of jedi. it appears to bring in the largest number of evacuees so far. the exact numbers are unknown, but it appears to be at least 700 people on the ship. the saudi government, bringing warships from their navy. this is also a private charter that has come in here and appears to be carrying a lot more people. about 3000 people from 80 nationalities. this, if the numbers check out, would almost double the number of these that have been brought in from sudan to here in jeddah, then eventually to the

other countries. telling us there are several iranians on the ship, as well. there are a number of different nationalities from sudan that have come out. there is a big population of syrians in sudan, as well. they are from different nationalities. they are all grateful to have made it here from the journey. if they are coming from -- that is about 800 kilometers, more than 500 miles through some very dangerous territory. many people have risk their life to get through. then with some of the fighting that they have seen for them on the red scene. and if they're lucky, they can get on -- like this. what we were waiting for, they have two ambulances. two or three ambulances hear from the saudi red crescent

authority that will take them in. they are all kind of waiting patiently, which if you are ready spend 12 hours, what is a couple more minutes until you can finally get to safety. hopefully, eventually get to where they are going. >> yes, such a precarious journey. as you point out, those people are the lucky ones. larry madowo, thank you so much. from layoffs to a slowdown in can spending. just ahead, what that could mean for the epidemic economic outlook. stay with us.

we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity...

and we'd have a better view. do you need mulch? what, we have a ton of mulch. >> welcome back to all of you

watching here in the united, canada, and all around the world. this is seen in newsroom. the trouble has only gotten worse, leading to more speculation about the regional banks feature. shares have plunged more than 70%, finishing at $3.51, the disappointing quarter report on monday. it lost $100 billion in deposits. wall street's fears of a banking crisis. plus, the white house has snuffed out any hope of government intervention. this comes after a month of the silicon valley bank and the shutdown of the new york-based signature bank. an investigation into the failure of those banks. federal reserve says poor management as part of the reason why signature bank collapse. it was also affected by silicon valley bank's failure just days before. they pointed to managing shortcomings and to some of its own.

>> the report, thoreau. more than 100 pages. its findings, damaging. a textbook case of mismanagement. the federal reserve releasing its highly anticipated self- assessment. on the collapse of the silicon valley bank on march 10th. the fed's vice chair of supervision writing in a letter that bank senior leadership failed to manage basic interest rate and liquidity risks. board of directors failed to oversee and hold them accountable. federal reserve supervisors failed to take forceful enough action. in other words, this was a failure at every level. we already knew that the fed was aware of some of the problems. according to recent testimony, more than a year before the bank fell, supervisors begin raising red flags. so why couldn't they prevent the demise? >> the report says that they

delayed action to gather more evidence. witnesses were clear and growing. this meant supervisors did not force sbb to fix its problems. the report also acknowledging it is time for the fed to reconsider how it evaluates some banks saying, quote, we need to evaluate how to ensure that supervision intensifies at the right pace as the firm grows in size or complexity. what now? the ceo and cofounder of the policy analytics, he tells me, i think it will be a little bit more holistic, looking at broadening the scope of what they look at from financial metrics such as cash levels, the contribution of their deposits, to the character of the banks. for the larger banking systems, he wrote that svb was an outlier ,end quote, our system is sound and resilient. cnn new york. >> staying on the financial front, the favorite inflation

measure -- is taking hold, according to new data released friday by the commerce department. it rose 4.2% for the 12 months ending in may. that is what the federal reserve expected to meet on this week to look at the decisions for 2023. ryan is a senior -- at claremont graduate university enjoins me now from los angeles. thank you so much for being here with us. listen, i want to start with the banking. i mean, you have been warning about more cards potentially falling for a while now. how worrying is this? should the biden administration be doing more to step in here quick >> yes, you and i have talked about this. unfortunately, turmoil will come.

yet, still we are in the situation where the fds he is living in area it is a big deal. behind the scenes, they are trying to figure out the federal reserve and fdic, everyone is trying to figure out if it is an option to have another banged by that. it is just not looking very great. maybe they have to hold it a little while, then start selling the parts. there is the good news, if there is any good news, that there will be further regulations moving forward. that is conversation that was coming out with the other report of what happened a month ago with silicon valley bank and others. we will see more time, the ability to make sure this doesn't happen again. >> i just want to ask about the future here. is there more trouble still to come? >> you're always setting me up. he told me last year there was good news, you want about this stuff. >> you did predicted.

>> this was the big domino. do i think there will be other failures? i think there will be. with this magnitude, a top 16 bank in the u.s., it is still a big deal. we will see that bad management a matter where you are, it will lead to bad and poor results. it is not really indicative to the banking industry, per se, but how people are managing their business. in the u.s., don't be shocked or surprised if we still see more fallout. i'm not trying to predict more bad news. i don't want to be in that business. i do see the certain turmoil. >> talking about regulation coming out of this, you reference to the regulatory reviews that happened on the other two bank failures. what were the key takeaways. what would we learn? >> here's my key point. what they said, yes, social media played an aspect. yes, the fed should have done

more. more importantly, reacted faster. let me just hit this right on top of the head, it was the management. it was the bank management not doing what it was supposed to do, not managing the risks, analyzing the risks. i know sometimes, that can get lost in conversations. that is where it starts. everything else played a factor to it, but it starts there. silicon valley bank had the largest deposit in 2021. what do you do? the same thing and invest in the same places. it doesn't make any sense no matter what industry. boards matter in these conversations, being able to push back on the team. yes, the report did say multiple factors played into it, but it was clear, it starts with the leadership team. >> on the economy more broadly, we got lower than expected growth numbers earlier this

week, and then more economic numbers coming out yesterday, especially to do with inflation. >> to me, it was the consumer spending. what we saw, in the last month, it started to slow down. why is that important? because consumers are spending less. this type of news and the way the market reacts in general, it does make an effect, because of living rises, as well. it makes an effect that they will stop spending. you know, the growth numbers are still 1.1% year-over-year. still great, we will maybe not hit at 2% that they are looking at. yes, that is part of this whole puzzle. they also said, make sure it is clear, regardless of where the economy is. they are still looking to fight inflation. it still may increase interest rates, no matter where they are, where they think they need to be. >> last 30 seconds, big picked

her, tell the folks what this means. are we talking recession here? >> you know, it seems like we are heading that way. again, i hope i'm wrong. with all of this coming through, you know, a mild recession. we have seen the last week there have been great reports from some companies. you do see the layoffs occurring, you see companies starting to hold investments, and the see consumer starting to slow down. it does have that recipe that you will go into that type of recession, and they get news like this were banks and trust you to question these things. we see more saving rates being higher, more cash on the sideline. the economy will slow down just a little, and it can contribute to that later. >> it is always great to check in with you, check the pulse of the community.

thank you so much. appreciate it. u.s. lawmakers are calling for dialogue between the white house and capitol hill to resolve the end pass over raising the debt limit. republicans voted to raise it for a year in return for spending cuts that would gut the domestic agenda. we have the story from washington. >> house republicans earlier in the week pass a bill to raise the national debt limit by the narrowest of margins. after four voted against it, they approved it with 217 votes in the house, barely getting it through. that has not necessarily changed the dynamics and capitol hill. democrats in the senate, the democratic leader in the senate , jeffries, as well as the president of the united states, they are all saying they would not negotiate any kind of debt

selling with house republicans, saying simply that should raise it without any conditions, no spending cuts, because of the fact that the full faith and credit of the united states economy is on the line here. raise it without any conditions, they say. that is a position that is opposed by the republican leaders and the republicans in the senate. including mitt romney, who is known to cut deals in the past. he says this time, the white house should be cutting a deal with the house. >> the house is acted, we in the senate stand with the house. we have our point of view. time for the president to step in. >> they think it is time for the white house down with mccarthy to try to get a deal? actually have a meeting with biden and mccarthy on this? >> i think we are at a place where the president has put out his budget. we now have a counter offer. we will have to raise the debt limit. i think the dialogue should be

constructive among all of us. >> that last comment, the democrat from new mexico, a number of democrats are saying there should be some sort of dialogue. some have gone even further. he told me earlier in the day that the president should sit down with the speaker of the house. they should try to find a compromise, given the fact that they put out a plan, passed the bill. he may not like it, they said, but they should still try to find some sort of resolution. whether that happens remains to the scene. he told me he has yet not heard from the white house. the possibility could occur potentially as early as july. we don't know the exact timeframe yet, but that is not a whole lot of time. try to go through both chambers of congress, all of that will

take a significant amount of time and effort. right now, no talks are happening at what could be the worst ever -- and a potential economic disaster in just a matter of weeks. cnn, capitol hill. sonic still ahead, one of the most powerful men in washington is duped by infamous russian pranks yours. what the federal reserve is saying coming up. sometimes, the lows of bipolar depression feel darkest before dawn. with caplyta, there's a chance to letet in the lyte. caplyta is proven to deliver significant relief across b bipolar depression. ununlike some medicines that only treat bipolar i, caplyta treats both bibipolar i and ii depression. and in clinical trials, movement disorders and weight gain were not common. call your doctor about sudden mood changes, behaviors, or suicidal thoughts. antidepressants may increase these risks in young adults. elderly dementia patients have increased risk of death or stroke. report fever, confusion, stiff or uncontrollable muscle movements which may be life threatening or permanent.

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president biden is making his first big fundraising push since officially launching his re-election campaign earlier this week. he met with more than 100 of his biggest donors at a washington hotel. he told attendees, quote, we need you. our democracy need you. republicans are trying to take us backwards. together, we would not let them do it.

u.s. federal reserve -- thought he was talking to volodymyr zelenskyy earlier this year, but it was a russian prank . >> so how do you assess the policy of the central bank of russia, for example? they managed to save the rebel, weikel >> ushered say that, in our system, in our governmental cyst , it is really the administration. we are not part of the administration, we are an independent venture bank. >> that spokesperson acknowledged the incident. having a conversation with someone who misrepresented himself as the ukrainian president. the clip had been edited and couldn't confirm the authenticity. it has been referred to law- enforcement. more now from cnn's matthew. >> this is something that these comedians, they do quite a lot. that is what they call

themselves. they routinely pose as world leaders, and then they call other world leaders and other figures, having these conversations, which are not necessarily hilarious, but they are meant, i think, to be sort of an approximation of the kind of conversation they would expect the leaders to have as a way of sort of getting into what otherwise isn't made public. the chairman at the u.s. federal reserve, they were talking to him about the u.s. economy, the interest rate rises in the country. he was talking about how the economy could fall into a recession, are this experience very slow growth, they also try to draw him on his assessment of the russian central bank, given how many sanctions have been imposed. to his credit, he didn't in the

clips that i have heard, actually say anything that was particularly inappropriate or anything like that. the federal reserve released a statement that no sensitive or confidential information was discussed. nevertheless, what he believed was a private conversation has now been made public, they would not be happy about that. remember, every time this figure says anything in public, it could potentially move the market. that is why he is so tightlipped about economic matters. >> all right, still ahead, the battle on the court is heating up. the playoffs and closer to the finals. joining now with all of the highlights coming up. please.

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friday night nba playoffs for one for the books. 118-199, the kings and warrior series is now tied at three games apiece. sacramento set to post the deciding game on sunday.

joining me now with a more from new york. carolyn, that wasn't the only game friday night. they took on the grizzlies, as well as he >> yeah, that is right. laker superstar lebron james found that he would be better in game six, and the nba's all- time leading core is certainly a man of his word. he came out hot in front of his home crowd, made 7 of his first 8 sets. a monster slammed late in the first half. he has 16 points in the first session, one more in his total for all of game five. he finished with 22, they put it down in the second half, winning by 40 to clear out their first series at home in more than 11 years. >> we understand we had an opportunity to play in front of our fans. we came out with a disposition. with a next play mentality. even when we make mistakes, we brush it off right away, moving

on to the next play. from the start of the game, we were locked in. all the way until the final seconds of the game. >> the lakers will face the winner of that series that you mentioned. that one, coming down to the winner take all tomorrow after losing three straight games, the kings are backing back in a big way. they built a double-digit lead in the second quarter, and the warriors never got within five for the rest of the game. they win a big 118-when i deny. after the game, he said his teammates never gave up hope. >> there is always a chance to and still win the game. one good night could get you far. we always believe in ourselves. we never came in here just thinking our season would be over tonight.

>> continuing on saturday with the top-seeded denver nuggets hosting the nuns. boston bruins david foster not -- making his presence felt, one of the most incredible goals you will ever be. look at that! taking it between his legs, going top show for the score. the panthers earning their nickname of the cardiac cats. they went shot for shot, find the back of the net for a combined seven goals. absolutely bananas third period. the last three unanswered to grab the win. the series, shifting back to boston for a decisive game seven. in the meantime, the defending champion avalanche keeping their season alive. a big win -- that would end up being the game-winner as they go on to win 4-1. game seven will be sunday, it is the first

game seven in franchise history for seattle, so it will be a big one. three more teams will have a chance to close out on saturday, as well. everything get started with them heading to the maple leaves. nba nhl in full swing next week. >> absolutely wanted to go back and quickly get your pick of who you think will take it all? >> oh man, that is so tough. in the east, the books are knocked out of it now. the big story line, will king james face the kings are golden date? golden state can somehow win this series, they are still dangerous, even though they are not quite as talented. they have slowed down a little bit since that championship team that has put so many up in the rafters. it is tough. i really like this team. i think they will have a meeting with the lakers. >> all right, we will find out. appreciated. as carolyn mentioned, kevin

durant is getting ready for game one of the semi finals tonight, but he's already got reason to celebrate. he just signed a lifetime contract with nike. he is now the third player to sign such a deal along the all- time greats, michael jordan and lebron james, 13 time all-star and two-time nba champion tweeted, it is truly a honor. he has been working with the company since his 2007 rookie season, producing 50 additions with a 16th -- on the way. getting ready for a really big day, the coronation of king charles iii now only a week away. just releasing new portraits of king charles and queen camilla. they were taken last month in the drawing room of buckingham palace. you can watch the historic date unfold here on cnn. we will air special live coverage of the coronation on sunday, may 6th.

it all starts at 5:00 a.m. in new york, 10:00 a.m. in london. that is all for me. i am kim brunhuber. thank you for joining us. for cnn this morning, it is next. this delectable ramen noodle recipe will put an end to your drive-through dinner rituals. throw that powder in that tasty combo of delightful carrots, and the rich touch of bok choy. knorr taste combos. it's not fast food, but it's soooo good. ♪ ♪

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