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 CorkerVulnerable senators hold the key to Trump's fate Trump's GOP impeachment firewall holds strong George Conway hits Republicans for not saying Trump's name while criticizing policy MORE (R-Tenn.), emerging from a meeting in Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGraham to introduce resolution condemning House impeachment inquiry Overnight Defense: Trump's Syria envoy wasn't consulted on withdrawal | McConnell offers resolution urging Trump to rethink Syria | Diplomat says Ukraine aid was tied to political investigations Partisan squabbles endanger congressional response to Trump's course on Syria 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 SchumerTurkey says soldier killed despite cease-fire in Syria Schumer calls for FDA to probe reports of contaminated baby food How Trump and Pelosi went from bad to worse 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 TrumpGraham to introduce resolution condemning House impeachment inquiry Support for impeachment inches up in poll Fox News's Bret Baier calls Trump's attacks on media 'a problem' 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 MulvaneyDemocrats say they have game changer on impeachment Trump urged to hire chief strategist for impeachment fight Diplomat says Ukraine aid was tied to political investigations MORE and White House adviser Jared KushnerJared Corey KushnerMnuchin to attend Saudi economic forum one year after Khashoggi death Career State official warned about Biden's son: report Buttigieg knocks Trump as a 'walking conflict of interest' 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 FlakeVulnerable senators hold the key to Trump's fate Trump's GOP impeachment firewall holds strong How to survive an 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 AlexanderGOP braces for impeachment brawl McConnell tightlipped as impeachment furor grows GOP senator: 'Inappropriate' to discuss opponents, but impeachment a 'mistake' 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 PelosiGraham to introduce resolution condemning House impeachment inquiry Democrats say they have game changer on impeachment Hillicon Valley: Zuckerberg would support delaying Libra | More attorneys general join Facebook probe | Defense chief recuses from 'war cloud' contract | Senate GOP blocks two election security bills | FTC brings case against 'stalking' app developer 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 MattisJohn Feehery: Mutiny on the Bounty Amash rips Trump over move to send troops from Syria to Iraq Defense chief says US troops leaving Syria will go to western Iraq 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.