jazeera, america. these are the stories we are following for you. >> i believe that the democrats are now overplaying their hand. senator john mccain crying foul, as democrats renounce the latest house republican plan. >> it is a federal case again, a michigan affirmative action court ruling going before the u.s. supreme court. and one of the largest oil companies in america now trying to prevent the company of ecuador from collecting $18 billion. >> ♪ ng

toward a potential default, mrs. a lot of talk about ending the government shut down, and the deadlock over the debt ceiling. but still no deal. senator leaders are now saids to close to an agreement, the house republicans they have come up with their own plan which was swiftly rejected. joins us now live, what does it mean that the house republican party putting forward it's own plan, does that mean a deal. >> well, it's not a good sign, because we are seeing republicans talking about something different than the house. and they are bringing up issues that are all but forgotten. john boehner says no firm decisions have been made, but they are seeing details of a plan emerge, here is speaker baner. >> a lot of opinions about what direction to go. there have been no decisions about what exactly we will do. but we will 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 reopened. >> house republicans met behind closed doors this morning and too many of them do not like what the senator was cooking up, so there's thissive vol now to something that was being talked about two weeks ago. so this bodes ill for getting any sort of deal brokered over the next couple of days, dale? >> that house plan doesn't stand any chance of gaining any traction in the senate. >> let's talk about the details. just like the emerging senate plan, it would reopen the government and raise the debt ceiling along the same time line. it does not call for a negotiating group to work on budget issues. something that both sides -- both republicans and democrats were eager to see happen, and it drove back into the mix to the healthcare law. it would roll back this

tax, and also take away subsidies for president, members of congress, other staffers both of those have some interest by some democrats, but democrats are saying this is not the way to go at it. >> when i went to bed last night, i thought a deal would be reached today, when i woke up this morning i thought a deal would be reached today. when i go to to bet tonight will a deal be reach. >> it is definitely a good question, let's talk about how the reaction is going to what house republicans are proposing. house democratic leadership said not going to happen, the white house is calling it ransome, and here is what senator majority leader harry reed has to say. >> the house republican leaderships plan that is now out and people taken a look at it, it is a plan to advance an extreme piece of legislation, and it is nothing more than a blatant line. >> because there was this process moving forward.

you are seeing a lot of behind closed door meetings. but now they are looking at what the house is doing. they need to be at the table negotiating. >> there's a reason to negotiate. instead, they are rejecting it out of hand, and i think that's wrong. i think it is very very wrong. this was a fools error to start with, we were never going to defund obama-care, but there is now appears to be a good faith proposal from republicans side, not insisting on defunding obama-care. they are making some reasonable provisions, and that should be negotiated and voted on, rather than rejected out of hand. i believe the democrats are now overplaying their hand. >> now, senator mccain is talking about a couple of items that are in this house bill.

there are a fair number that are in favor of rolling that back. trying to change it a little bit, democrats are trying to say they don't want to negotiate and use 24 debt l debt ceiling show down, and at the federal government show down as the place to bargain over these issues. so the big take away is we are once again at an impasse. as the plan comes into the mix, we are seeing senators sort of working together, seeing the republicans on one side, the democrats on the other, so dale, i don't know. my friend, maybe stay up all night tonight and you won't have to wake up tomorrow morning thinking there's no deal. libby casey, i guarantee you you will not get any sleep either, thanks a lot. well, wall street is still leery about whether or not washington will work out a deal before that deadline on thursday. the dow had gone from 70 points down to almost break even when republicans leaders then started their talk about

a compromise. but now that come back has faded and as you can see, the blue chips remain in the red. the dow down some 55 points. veterans and military groups going back to the world war ii memorial this morning. they went there to call on congress and president obama to end the 15-day-old government shut down. paul is there live, and paul, what was their message to congress today. >> this morning the message was for congress really to set aside the politics and the words of one of the speakers here to stop using veterans as a political chew toy. what they are saying here is they are tired of hearing the political back and forth, they want to know that their benefits they field they have earned are secure. they say they have had americas back for generations it is time for congress to have their back, they say defaulting on veterans simply is not an option. let's listen to one of

the speaks here this morning had to say. >> our elected officials must understand that posturing and playing politics with vetted remembers isening acceptable. not just healthcare so that veterans continue to receive all the services they have earned. >> and you hear they are not just benefits for healthcare, but also benefits for education, they are very concerned about deals coming due for tuition, for those already taking advantage of the g.i. bill. dale just a lot of anxiety. still saying that it is time for politics to be put aside, but not nearly the militant stance towards the white house that we heard here on sunday. highway is the shut down effecting the department of veterans affairs?

and it's ability to help. >> what they are saying about the shut down, specifically, is it is slowing their time for claims being processed and raising their general anxiety, which is more trouble than that want to bear after having sacrificed so much. the bigger question is in the event of a default, what would actually happen to veterans benefits. fresh surery secretary lou told the senate finance committee that in the event of a default, the government needs to start deciding which bills it is going to pay, and that veterans benefits and even active military salaries would be in jeopardy. >> palm, thank you very much. a suspected senior al kade do leader is about to appear ink side a new york city croom. a grand jury recently indicted him for the role in the 1998 bombings for those u.s. embassies. jonathan has more from outside the federal

courthouse in manhattan. >> al quaida suspects will face a judge today inside this new york courthouse. he will be presented and arraigned after being captured ten days ago in triply. 56 being on the run for close to a decade, as one of america's most wanted men, now, he is accused of having a role in the 1998 embassy bombings in africa, that killed more than 200 people. court documents allege that he ran surveillance, and that it was planned in response to u.s. action in somalia. now he was indicted in new york in 2001, along with 20 other co comparisons. since he was picked up by u.s. forces in libya earlier this month, he has been intergrated on a ship off the african coast, but those interrogations were cut short because of health problems. he apparently suffered from hepatitis c so the desix was made to bring him to the united states to a medical facility here. he has since recovered and now will anxious charges for his role in

those terror attacks in the late 90's. >> and there are reports coming from inside the croom that indicate he has just pleaded not guilty. the supreme court has rejected california's bid to modify a court order to ease overcrowding in their prisons. the decision leaving in place a ruling by a lower court, ordering the state to reduce its population by 96,000 inmates. former san diego mayor now facing criminal charges. the office says that he has been charged with felony false imprisonment, and million dollars battery. he is expected to appear in court this afternoon, those charges come several weeks after the former democratic congressman resigned after 17 women accused of him of sex wars harassment. the entreat taking up a case that could decide the decision of

affirmative action. well the justices will have to decide if that law is constitutional. more. >> a long sought legal battle that has brought the issue of race and college admissions to the forefront. it was back in 2006 when 58% of voters passed the amendment to the state constitution after their public universities. that initiative has led to a legal fight pitting michigan's attorney general, who will argue to uphold the ban against the coalition to defend affirmative action. the civil rights activists group who will argue against it. >> i really feel a responsibility. >> kevin gain as professor of history and african-american studies at the university of michigan is among many names in the suit opposed to proposal 2. >> it is a very lonely position to have to feel that you have to fight

battles that you had thought had been fought, and won. years ago. >> since proposal 2 took effect, the number of black and latino students entering the state's public universities has dropped by a third. professor gains believed the ban on affirmative action is blocking out diversity. >> there's a misconception out there, that race con, admissions is all about admitting someone based on the color of their skin and nothing else, and nothing could be phut fresh the truth. >> but proposal disagree, among them is jennifer great whose in 1997, was denied admission to the university of michigan and claimed she was the victim of discrimination. >> i believe in equality, i believe that people should be treated without regard to race, and i think people should be judged on their character and merit, or for that matter their gender. >> the supreme court must decide if the state constitutional amendment banning discrimination is

in and of itself a violation of the equal protection clause of the u.s. constitution. >> what the proponents of this constitution or amendment are trying to argue, and are suggesting, is thatting this nothing more than promoting equality, and antidiscrimination. >> and that is valid only if you completely ignore history. diversity and other good intentions should not trump the right to be treated equally. >> a decision by the court, that could effect affirmative action here and across the nation, is expected several months from now. >> am al jazeera, detroit. >> some other states have adopted laws or policies to bar including california and washington state. still ahead, it is a battle of david verses

goo hyatt, next on al jazeera, the fight between oil giant chevron and residents of ecuadors rain forest.

there's more to financial news than the ups and downs of the dow. for instance, can fracking change what you pay for water each month? have you thought about how climate change can affect your grocery bill? can rare minerals in china affect your cell phone bill? or how a hospital in texas could drive up your healthcare premium? i'll make the connections from the news to your money real.

got off to a positiveing start. six western powers including the u.s. are meeting in geneva. reigning officials say nose officials have welcomed the proposal to resolve the dispute. this is the first time the two have met since iran's new president was elected in june. the battle between oil giant chevron and resident of ecuador rain forest is about to begin in new york. the fight is over an $18 billion judgement against chevron. plaintiffs say waste from wells was improperly dumped and caused lasting health and environmental damage. reports from ecuador. >> an activist who gives so called toxic tours.

he dig as small well outside a house in the amazon, and shows us the waste of oil drilling. he says it was dumped in a pit by texaco, without proper safety measures. >> they should have disposed of this, why did they create these pits in why didn't they put nit metal tanks like they do in the united states? >> mercedes hernandez lives in one of the homes. >> our health has been effected. my family is sick. i'm sick. my bones ache and my sons are ill. >> mercedes another 30,000 people filed a class action suit against texaco. now owned by chevron. >> took the oil giant to court and won, the company was told to pay $18 billion by an ecuadorian court. but chevron appealed and is now accusing him and his team of mass fraud.

>> crude oil spilled on the roads indigenous people are effected children with leukemia, all these are chevrons problems now, because they show the company is putting up so the world doesn't see the criming committed here. >> chevron did not respond to al jazeera's interview request, the company has denied wrongdoing in ecuador, and claims the area was properly cleaned up. people here say the new trial means they may not get the money they want in damages. there are 808 waste pits scattered through the jungle, the crude over the years has formed these pools. we are standing on top of a reservoir, and it has gone solid but it is pretty deep. they tell us about three meters or so, and as you can see, it wasn't cleaned up properly, there's oil everywhere. and the smell is really strong. and the whole place it's like this. >> while the community awaits the verdict, many say the damage to the

environment is done. and hopes that the country bans drilling in the amazon rain forest once and for all. monica, al jazeera. in the ecuadorian amazon. >> following this case she is live now at the courthouse here in new york, what is going on inside the trial? >> well day one of the trial here dale, and this is opening statements for both chevron and the lawyer representing the ecuadorians who is accused by chevron of basically fabricating that case, which led to the $18 billion damages award in ecuadorian court. let's be clear, this is not about chevron denying responsibility or saying that texaco was not responsible for the pollution, chevron is saying the lawyer representing the ecuadorians committed fraud and that he fabricated a scientific report which was supposed to be done by an independent scientist which led to their $19 billion pay out. also saying that he

bribed the judge which awarded that amount of money, and that he coerced other judicial officials so now it is the lawyer of the ecuadorians here on trial. the lawyer says these claims and accusations against him are outrageous, and has accused the judge of bias against him, and in favor of chevron. we are not expected good outcome for the ecuadorians. he has also release add pretrial ruling that there's probable cause that some kind of fraud has been committed. >> has there been any reaction to the trial. >> any reaction to the trial? >> about 100 ecuadorians just around the corner from me, they have come here. they have living here in the united states, they held a protest here, some of them were dresses in traditional depress as well. saying chevron must bay and be held accountability. this case has gone on for

about 20 years and has been heard in about 23 courts. as they have tried to get a judge to uphold this and try to get them to some kind of a judgement that will help them get the conversation they feel they have deserved. this is very a much a battle. the oil industry, and in latin american to see which way this will go. >> reporting life from the federal courthouse, thank you very much. in business news, this time it is city group, the bank is reporting disappointing earns. one of the reason is a drop in consumer lending as highest interest rates slow. jpmorgan chase and wells fargo have said their bottom lines were effected by the reify pull back.

some only aist say the stalemate over spending can be weighing on business confidence. >> and we will be right back.

welcome back to al jazeera. an earthquake has left more than 100 people dead. to help people after that quake hit the philippines earlier this morning. >> term you about the philippines now. certainly not the last thing that can happen to them, we have had earthquakes typhoons and maybe even more weather moving in. the philippine plate goes under the you ray sean plate that's where you get the earthquake. that was today, just about two days ago we had

a typhoon come through, not only that but in the forecast there could be another storm developing it's quiet now in the philippines with this area of clouds could intensify and continue to move to the west. it is all over the same area, that is a big problem there, a front has stalled and this rain will be focused around central texas into oklahoma and continuing to move east to arkansas. right now the temperatures show that front. an inch or two of snow in south dakota. all of this symptom which is just slowly moving from west to east. now once the rain clears out, which it will, the temperatures will drop.

jew can see that cold air coming in. and into the midwest, this front will move it's stationary and texas that's why all that rain is coming over the same area. sew we are tracking this storm developing. but the rain continues to move through, maybe even thunderstorms in illinois and ohio. so the temperatures will be warm with showers and storms. this will be by tuesday evening overnight tonight to tomorrow morning this line moves through, there it comes into western pennsylvania, maybe a few showers here in the northeast, but the temperatures will try to warm up just a bit. climbing into the 70's before this rain moves through. maybe not until thursday or friday. by tomorrow it is moving through central pennsylvania. you can see it slowly pushing through the country, and that snow clearing out, and the temperatures are getting coulder. as we have been reporting

a suspected senior al quaida leader recently captured in libya, making an appearance in court today here in new york. a grand jury recently indicted him for his involvement in the 1998 bombings of those u.s. embassies in kenya and tabs niya. the hearing was very brief, he entered with -- he had a long gray beard as welt, looking far more disselfed and older than the photos we have seen and posted in the last few days since his capture ten days ago. he answered softly, quietly, really yes or no questions and he understood the instructions the judge gave him, and that he needed an attorney, everything was translated for him, of course, since he does not speak

english, so he said that he needed an attorney, and that one would be appointed for him, he also pled not guilty to the charges and there are of course a long spring of charges he faces. conspiracy to kidnap, to detroy property, all stemming from those dual embassy bombings in africa, killing more than 200 people. he was one of america's most wanted men, alluding authorities for close to more than ten years in fact. until special operations were able to track them down, he was questioned. for no more than a few days and then brought to the united states, and now inside a croom. this of just marks the beginning of what is expected to be a very lengthy trial. >> how big of a moment is this? >> it is a big moment. they have been chasing these 20 or so co

conspirators since 1998. several have already been convicted. and several others remain to stand trial, including al libby. there is a chance a that the four are here could be charged together. legallageists have said it is a possible. he is one of the most wanted men, alluding authorities for so long, so this was a big moment. >> remind our viewers how he was captured and why this is so controversial? >> it is controversial, because he was picked up by command toes outside his home. now there is a chance that he could have been taken to guantanamo bay, that is one idea that many lawmakers wanted. >> jonathan bets live outside the federal

croom, earth rise is next. blame