On The Money: Latest on shutdown drama | Senate leaders tout breakthrough for moving forward | Last-minute talks to secure final deal | Trump reverses, says Dems to blame | Dow suffers worst week since 2008 crisis

Happy Friday and welcome back to On The Money. I'm Naomi Jagoda, bringing you the latest finance news.


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THE BIG DEAL -- Senate leaders have deal for proceeding on House border bill. Sen. Bob CorkerRobert (Bob) Phillips CorkerTrump announces, endorses ambassador to Japan's Tennessee Senate bid Meet the key Senate player in GOP fight over Saudi Arabia Trump says he's 'very happy' some GOP senators have 'gone on to greener pastures' MORE (R-Tenn.), emerging from a meeting in Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellDemocrats press FBI, DHS on response to white supremacist violence The Hill's 12:30 Report: Democratic field narrows with Inslee exit McConnell rejects Democrats' 'radical movement' to abolish filibuster MORE's (R-Ky.) office, on Friday said Senate leaders have an "agreement" on how to proceed on a House-passed measure funding Trump's border wall.

Corker cautioned that it's an agreement on process only but expressed hope it could ultimately lead to a deal to avoid a government shutdown.

McConnell and Senate Democratic Leader Charles SchumerCharles (Chuck) Ellis SchumerJewish Democratic congresswoman and veteran blasts Trump's 'disloyalty' comments Schumer says Trump encouraging anti-Semites Saagar Enjeti: Biden's latest blunder; Krystal Ball: Did Schumer blow our chance to beat McConnell? MORE (N.Y.) are expected to enter into the agreement on the Senate floor.

"This is... will be an agreement between McConnell and Schumer about what next happens on the Senate floor. You'll see them to enter into a little discussion," Corker said. "It charts the course forward that gives us the best chance of actually coming to a solution."

Corker said it could avert a government shutdown.

"Some of the folks at the White House seem to be optimistic," he said, adding that President TrumpDonald John TrumpThe Hill's Campaign Report: Democratic field begins to shrink ahead of critical stretch To ward off recession, Trump should keep his mouth and smartphone shut Trump: 'Who is our bigger enemy,' Fed chief or Chinese leader? MORE "is very aware of what's happening."

Alex Bolton on the Senate breakthrough and what's next.


How we got here...


THE VOTE – Senate vote on House-passed bill stuck in limbo. Congress appeared to be heading toward a partial government shutdown at midnight as lawmakers scrambled for a last-minute deal.

President Trump has been insisting that any spending bill include funding for a border wall, and the House passed a stopgap government funding bill with $5.7 billion for the wall and border security last night.

But that bill quickly found itself stuck in Senate limbo. The Senate began taking an initial procedural vote on the House-passed bill at 12:31 p.m., but ran into problems.

The Hill's Jordain Carney has more on the vote here.


THE TALKS – White House officials powwow with Schumer. Vice President Pence, White House chief of staff Mick MulvaneyJohn (Mick) Michael MulvaneyTrump's latest plan to undermine Social Security Trump says he'll decide on foreign aid cuts within a week Dick Cheney to attend fundraiser supporting Trump reelection: report MORE and White House adviser Jared KushnerJared Corey KushnerPresident tweets 'few work harder' than Ivanka, Jared PETA billboard in Baltimore calls Kushner a 'rich pest' Top immigration aide experienced 'jolt of electricity to my soul' when Trump announced campaign MORE met with Senate Democratic Leader Charles Schumer (N.Y.) in a last-ditch effort to avoid a partial government shutdown.

The meeting with senior administration officials and the Democratic leader was one of several negotiations taking place in the Senate.

Retiring Sens. Jeff FlakeJeffrey (Jeff) Lane FlakeAnti-gun violence organization endorses Kelly's Senate bid Arpaio considering running for former sheriff job after Trump pardon Overnight Energy: Warren edges past Sanders in poll of climate-focused voters | Carbon tax shows new signs of life | Greens fuming at Trump plans for development at Bears Ears monument MORE (R-Ariz.) and Bob Corker (R-Tenn.) are trying to negotiate a bipartisan deal with Democrats that could pass both chambers, win the president's signature and avoid a government shutdown.

Flake is pushing a deal that would reauthorize the Deferred Action for Childhood Arrivals (DACA) program in exchange for border-wall funding.

Sen. Lamar AlexanderAndrew (Lamar) Lamar AlexanderThe Hill's Morning Report - How will Trump be received in Dayton and El Paso? McConnell faces pressure to bring Senate back for gun legislation Criminal justice reform should extend to student financial aid MORE (R-Tenn.), a senior member of the Senate Appropriations Committee, meanwhile is urging colleagues to find a compromise based on the Homeland Security funding bill that the Senate Appropriations Committee passed in June by a margin of 26 to 5. That bill would provide $1.6 billion for border fencing, which is more than the $1.3 billion that Schumer and House Democratic Leader Nancy PelosiNancy PelosiMoulton drops out of presidential race after struggling to gain traction Conservatives push Trump tariff relief over payroll tax cuts Democrats press FBI, DHS on response to white supremacist violence MORE (Calif.) have proposed in their latest offer to Trump.

Alex on lawmakers scrambling to negotiate a final deal.


THE MARKETS -- Dow has worst week since 2008. The Dow Jones Industrial Average fell over 1,500 points this week, including a 400-point drop on Friday alone, in what CNBC called the worst weekly performance since the 2008 global financial crisis.

Markets reeled this week as the Federal Reserve Bank raised interest rates, while investors were also rattled over a potential government shutdown and the resignation of Defense Secretary James MattisJames Norman MattisOnly Donald Trump has a policy for Afghanistan New Pentagon report blames Trump troop withdrawal for ISIS surge in Iraq and Syria Mattis returns to board of General Dynamics MORE.

The Nasdaq, another major stock index, fell into a bear market, posting a drop of 22 percent since its peak in August. The index fell over 8 percent this week alone.

With Friday's close, stocks remained in the red for the year. Both the Dow and the S&P 500 closed over 9 percent below their opening value at the start of the year.

Niv Elis on the markets here.



  • President Trump started the day with a series of tweets on the government funding saga, including one where he said Democrats would be to blame if there was a shutdown. That's a reversal from last week, when he said he'd be "proud" to shut down the government over border-wall funding.
  • Trump also urged Senate Majority Leader Mitch McConnell (R-Ky.) to use the "nuclear option" and eliminate the legislative filibuster so that a spending bill with wall funding only needs 51 votes to pass. But McConnell has rejected that idea, as have several other Republican senators.
  • A group of Senate Republicans met with Trump at the White House this morning. McConnell said after the meeting that he will continue to negotiate with the president.
  • Senate Republicans say they are looking for more clarity about what Trump would be willing to sign besides the House-passed bill.
  • Some Senate Republicans are proposing to save the stalled House-passed bill by including a reauthorization of the Deferred Action for Childhood Arrivals program.