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 CorkerPress: How 'Nervous Nancy' trumped Trump Press: How 'Nervous Nancy' trumped Trump Amash gets standing ovation at first town hall after calling for Trump's impeachment MORE (R-Tenn.), emerging from a meeting in Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGOP nervous that border wall fight could prompt year-end shutdown GOP nervous that border wall fight could prompt year-end shutdown Jon Stewart slams McConnell over 9/11 victim fund 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 SchumerElection security bills face GOP buzzsaw Election security bills face GOP buzzsaw US women's soccer team reignites equal pay push 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 TrumpTrump cites tax cuts over judges as having biggest impact of his presidency Trump cites tax cuts over judges as having biggest impact of his presidency Ocasio-Cortez claps back at Trump after he cites her in tweet rejecting impeachment 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 asks Mulvaney to leave room during ABC interview due to coughing Trump asks Mulvaney to leave room during ABC interview due to coughing GOP nervous that border wall fight could prompt year-end shutdown MORE and White House adviser Jared KushnerJared Corey KushnerFinancial disclosure form shows Ivanka Trump earned M from DC Trump hotel Financial disclosure form shows Ivanka Trump earned M from DC Trump hotel Kim Kardashian West joins Trump at White House event for ex-prisoners 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 FlakeDemocrats needle GOP on standing up to Trump Democrats needle GOP on standing up to Trump Amash gets standing ovation at first town hall after calling for Trump's impeachment 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 AlexanderTaylor Swift thanks Cory Booker for signing Equality Act petition Taylor Swift thanks Cory Booker for signing Equality Act petition Senate health panel to move forward on package to lower health costs next week 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 PelosiOcasio-Cortez claps back at Trump after he cites her in tweet rejecting impeachment Ocasio-Cortez claps back at Trump after he cites her in tweet rejecting impeachment GOP nervous that border wall fight could prompt year-end shutdown 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 MattisTop nuclear official quietly left Pentagon in April Top nuclear official quietly left Pentagon in April Overnight Defense: Pompeo blames Iran for oil tanker attacks | House panel approves 3B defense bill | Trump shares designs for red, white and blue Air Force One 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.

 

THE (LONG) DAY SO FAR IN SHUTDOWN NEWS:

  • 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.

 

THE LATEST IN NON-SHUTDOWN NEWS: