>> welcome to al jazeera america. i'm del walters. here are the stories we are following for you right now. >> the our way or the highway mind set must stop. the challenges we face as a nation require bipartisan solutions. ceased by u.s. forces in libya, a terror suspect now facing a judge in new york. and an earthquake leaves dozens dead in the philippines. ♪ call it signs of life but

there is movement in the senate that could break the political dead lock. senate leaders could be closing in on an agreement to reopen the government and raise the debt ceiling, but house republicans may be on a different page set to offer their own plan. our white house correspondent mike viqueira joins us live from washington. mike, what are we hearing about that plan that republicans might offer? >> the first thing people need to know is nothing a done deal yet. we are on the eve of a possible default, certainly busting through the debt ceiling october 17th on thursday, and yet house republicans are not willing to go along with the emerging deal coming out of the senate that engendered so much optimism yesterday.

we're waiting for them to come out of a meeting that has now run one hour past schedule. a two-hour meeting we understand that has been quite contentious. lifting the debt ceiling to take the country until february. remember we started this controversy, this crisis, really when tea party affiliated conservatives insisted on delaying or defunding the president's signature health care law, obamacare. they are now just nibbling around the edges and house republicans are coming up with their own plan. but they want to repeal the medical device tax and a couple of other fig leafs.

the two sides are close, as i say they are just talking around the margins now, but it's unclear whether there will be the votes in the house to get the senate bill to go through. >> we have our eyes on two frames right now, but tell us about the senate deal in the works right now. >> this started when moderate republicans in the form of susan collins from maine who has been a thorn in the side of many conservatives, she came forward with this plan to extent the debt ceiling, to fund the government, the dates once again january 15th to fund the government until then, and then raising the debt ceiling until roughly february 7th, and in the meantime we have heard promises to try to work out some budget

priorities. again, house republicans are not happy with that. this is a familiar scene. the house virtually ungovernable, .john boehner in hot water, the senate steps in, coming up with a compromise, forces it on the house, the house is very unhappy, and we go to the brink yet again. >> mike despite the fact that an army of economists have reported that going past that october 17th deadline for the debt ceiling to expire will have a devastating impact on the u.s. economy and the world economy, there are members of the republican right who still insist that it will be not be dire. >> right. the default in ires. and i'm sure they are making their voices known within that closed door meeting at this very moment. it's hard to believe, most americans and the polls certainly bare this out, given the warnings that have come from

economists of every stripe and not just administration officials or anybody with political laneses, that this is potentially the world economy on the eve of destruction. things could go south in a hurry. obviously there are dissenting voices who say things can be managed. are certain dates and landmarks along the road, like when the social security checks are to go out, whether the government can cover those and still a pay the debt on interest rates. but nobody thinks this is a good idea particularly in the business community, lobbyists who are warning republicans, trying to pressure republicans what used to be known as main street republicans to fight what the tea party is trying to do and what the tea party is all e

alleging in terms of this won't be that big of deal, not people believe that here in washington, on wall street, and among the think tank people, and yet here we are less than 48 hours away from that possible scenario, dell. >> mike, thank you very much. and like the rest of just, by the way, wall street is watching and waiting for some kind of decision. take a look at the board. the dow has remained in the red throughout the day, as investors wonder whether or not today's comments from capitol hill will actually mean we end up with an agreement. the dow down almost 60 points out in. >> the world war ii memorial in washington has become the focus of a veteran shutdown. gathering once again at the

memorial this morning. moments ago they held a press conference at the memorial, and paul is there live. >> reporter: good morning, dell, the message here today was really that these veterans say they are tired of being a chew toy for congress. that's their words, a chew toy for congress. calling on congress to do their jobs. saying they have had america's back for generations, and it's time for congress to have their back as well. they are worried about more delays to veteran's benefits, from health, support, and literally food on the table for veterans. so they are asking congress to get moving and sort this problem out. [ technical difficulties ] >> i right interrupt you

shortly, how is the shutdown affecting the department of veteran's affairs and it's a ability to help service members and veterans? >> what veterans were saying here today is that the shutdown is slowing down. the distribution of benefits and causing a lot of uncertainty and distress among veterans and their families who have already been so much and sacrificed so much for their country. they are wondering when they'll get the service they need, and what they can expect going forward. dell, we spoke to a couple of veterans, let's hear what they had to say. >> we're non-political. we blame everyone. and we want to make sure that they understand that. that we're not here to play into the political bickering as of course we have giant unity and joint together and represent about 10 million veterans across the country and service members

and their families, and ensure the message is, we don't care how they get it down, but we want to ensure they end the shutdown for the veterans and fellow citizens. >> reporter: dell one of the phrases that stuck with me is this is a self inflicted wound that congress has inflicted on the country, and veterans are saying they are tired of being a political chew toy. >> and i notice that particular memorial is open, is that because someone has picked up the funding to keep the monuments open? it seems to be at odds since it is a federal onclaif. >> that's our understanding, dell. there are a special memorial

happening here. it has been planned for sometime, but still, again, things here functioning somewhat as normal, but as you mentioned earlier, it is the site for some pretty pointed political statements to congress. >> paul, thank you very much. and we are hearing from the white house that the president will speak to house democrats around 3:15 this afternoon. we'll bring that event to you live. a suspected senior al-qaeda leader recently captured in libya is now set to appear inside a new york city courtroom later today. a grand jury indicting him for his involvements for the 1998 bombings of u.s. embassies. first we want to go back to capitol hill. >> -- our members today trying to find a way forward in a

bipartisan way that would continue to provide fairness to the american people under obamacare. there are a lot of opinions about what direction to go. there have been no decisions about what exactly we will do. but we're going to continue to work with our members on both sides of the aisle to try to make sure there's no issue of default and to get our government reopen. >> morning. we just talked to our members, and i think it's been very clear all along what we as republicans in the house have wanted. we have wanted the democrats to sit down and talk to us, and we have been saying since day one that we believe there should be no special treatment under the law and there should be fairness for all americans, those elected and those unelected. i'm glad to see that harry reid and the senate finally has begun to sit down and talk with the republican leader there. we encourage that, we also a has

the house republicans think it's very, very important for us to stress in whatever proposal we move forward will reflect our position on fairness. that no special treatment for anybody under the law. >> very clear in our discussions that we think individuals should be treated fairly. that big business should not have special treatment and members of congress should not have special treatment. we are very cognizant of the calendar. we want to find are solution to this, that gets america moving forward and back working again. >> for weeks now the republicans and house have been leading with solutions, and we believe this is the time for solutions and they need to be based upon fairness for all. we recognize people all across this country continue to struggle and have their challenges, and as a foundation we want to make sure laws written and implemented in a way

that provides fairness for all. whether it's moms, dads, businesses, seniors, young people, and we remain committed to be part of a bipartisan solution to find the common sense ways to make sure we're doing what is right for america. >> reporter: mr. speaker the changes in your bill to the president's health care law are arguably pretty minor, were they worth a two week shutdown? >> listen, we're working our way forward to provide fairness to the american people. >> reporter: can you guarantee he be not go past the deadline. >> i have made clear for months and months that the idea of default is wrong, and we shouldn't get close it to. >> reporter: will there be a vote today on the plan? >> we're talking with our members on both sides of the

aisle to try to find a way to move forward today. thanks. >> you have been listening to house speaker john boehner concerning the latest proposal by the republican side of the aisle and congress indicating that the word that was mentioned more than any other word during that short news brief was fairness, fairness, fairness, saying that they want to change the affordable care act better known as obamacare to reflect that members of congress have to abide by the same rules that the rest of the public does. the speaker also seeming to indicate that he did not believe the government would exceed the debt ceiling, which is to take place in less than 48 hours. which is good news for the markets. and take a look at the markets right now. the moment that house republicans came out and started speaking, wall street was in the negative by 70 points. as they indicated that they believed there would not be a

debt ceiling surpassed those numbers began to drop to where we are right now. that effects you and your packet book. that is your 401k. once again the house speaker saying we may be beginning to see some light at the end of the tunnel. we'll be right back.

[[voiceover]] every day, events sweep across our country. and with them, a storm of views. how can you fully understand the

impact unless you've heard angles you hadn't considered? antonio mora brings you smart conversation that challenges the status quo with unexpected opinions and a fresh outlook. including yours. as we mentioned before that republican news conference, the suspected leader of al-qaeda recently captured in libya is set to appear inside a new york city courtroom later today. a grand jury indicted him for the u.s. embassy bombings in kenya and tanzania. jonathan how big of a moment is this for federal prosecutors? >> reporter: dell, it's certainly a big catch for the

justice department. he was on the most-wanted list for years. there was a $5 million bounty on his head. now he is to appear here in the courtroom to face federal charges after being on the run for more than a decade. he was captured by american comma commandos in libya. he was interrogated for a week aboard the uss san antonio you. he is considered a computer expert who helped plan the 1998 u.s. embassy bombings in kenya and tanzania. in 2001 a grand jury indicted al-liby, along with 20 other terror suspects including osama bin laden. as early as 1993 it is alleged

to have begun planning attacks. al-liby is now in the custody of the justice department and has been read his miranda rights. the transfer came sooner than expected allegedly because of a health consider. he suffers from hepatitis c. it's unclear how cooperative he has been with his interrogators, but those questions certainly ended as soon as the stepped on u.s. soil. >> thank you, jonathan. elsewhere at least 93 people are dead after a 7.2 magnitude earthquake struck the philippines. we have more on the devastation.

>> reporter: what was once a marketplace is now an open-air hospital. lack of space, equipment, means medics are overworked, rescue workers also are stretched the earthquake hit just after 8:00 in the morning in the province. many say it was the strongest they ever witnessed. >> translator: we were caught by surprise. >> reporter: offices and schools were closed for a national holiday, which may have saved lives. >> there are many, many lifelines that have been blocked like roads and bridges and power, and we're just beginning to get the messages in right now as people -- people make the reports, but in the meantime, we have a lot of problems in terms of, you know, 400-year old churches collapsing, and we lost a belfry of a wonderful, wonderful church. but a lot of these things are

happening, and many of the dead came from falling debris. >> reporter: reports suggest that people are still stuck under the rubble, and after shocks continue to come cutting power and transfer links. the government is also worried about economic repercussions. this is one of the top tourist sites in the country and provides thousands of jobs for those in the province and those living in the out lying islands. they call this region the ring of fire and earthquakes are common, but one of this magnitude is rare. for now it is all about rescue efforts which will continue for days. some furloughed federal workers are expected to take out their frustrations on texas senator ted cruz today. they plan to hold a rally outside of his office. he has become a prominent face

of the government shutdown. last week he urged lawmakers to keep up the fight. >> none of us know what is going to happen on this obamacare fight right now. in my view the house of representatives needs to keep doing what it has been doing, which is standing strong. >> heidi what groups are protesting today? and we can hear them. >> reporter: yeah, you sure can. to my right are the protesters of the protesters. the pro-ted cruz group, including his own father. the groups that called for this protest are furloughed federal workers, joining them are a few other groups the alliance for

retired americans, the aflcio and the obama backed organizing for action nonprofit. they called this rally to ask congress to shop the shutdown, rate the debt ceiling. why did they pick ted cruz's office? they see him as the instigator of this shutdown. ted cruz urged his fellow house republicans to remain strong in their opposition of obamacare. and while those statements are earning ted cruz plenty of enemies here among the furloughed federal workers, it's also gaining him popularity among right-wing conservatives. they picked ted cruz as the

double-digit leader as a potential 2016 republican presidential candidate. and it's those gains that these people say are being placed on the backs of these workers. we are going to go to break, but before we go to break. take a look at wall street to bring you up to dated on what is happening on your 401k as they debate in washington. before republicans came to the floor and said what they wanted to do, that number was minus 70, it is now down to just five points in negative territory, which means that wall street likes what it heard from capitol hill again today. together unexpected voices closest to the story, invite hard-hitting debate and desenting views and always explore issues relevant to you.

that's all i have an real money. victoria azarenko hi, my name is jonathan betz,

[ technical difficulties ] a small group of tea party republicans who forced the government to shut down. president obama is set to meet with democratic leaders this afternoon. a court hearing is scheduled for al-liby, the suspected al-qaeda fighter seized by u.s. troops in libya. he is said to be a computer expert who helped plan the u.s. embassy bombings in tanzania and kenya. a 7.2 earthquake hit the philippines. at least 93 people are confirmed dead. i'm meteorologist dave suanders, we are looking at texas now. we have had flash flooding the

last few days. flash flood watches in texas a few warnings still going on down there, and it extents to northeastern texas and moves into arkansas and louisiana. we are looking at a lot of rain. the radar is tracking all of this rain. this is a front that is stationary. you are getting a lot of moisture coming in focused over this one area. now the forecast is showing that this rain area is all along this line here, two to three inches in the next 48 hours. maybe a little higher amounts there. so flooding will continue there. this is all part of a big storm system a little farther north. it's not the flooding that is a problem, it is the drop in temperatures. temperatures are higher than they were yesterday in indianapolis and minneapolis,

become look at how they drop in kansas, denver, and omaha. there is some snow in western south dakota, another one to two inches of snow coming down on top of areas that have already seen rain and snow. here is this line of showers and strong storms today. that will continue to push from west to east. so a big storm system that is slowly moving to the east, and will impact much of the midwest and the northeast here over the next 24 hours. that is what is happening now. this line will move through the midwest overnight tonight and into tomorrow. here comes the rain into western pennsylvania. temperatures will try to warm up, maybe into the 70s, and just a few showers followed by cooler weather. >> thank you very much. "inside story" is next. and for news updates throughout the day, you can go to our

website, aljazeera.com. and the dow is now down ten.