welcome to al jazeera america. i'm del walters. these are the stories that we are following for you. the senate convening right now and lawmakers say a deal may be in place to raise the debt ceiling and beat the deadline on default. a positive reaction on wall street, the dow up close to 200 points. ♪ we are now just 12 hours away from the u.s. reaching its debt limit and potentially losing its ability to borrow

money. but senate leaders say they are close to a deal to avoid a default and reopen the government. the debt is nearly $54,000 for each and every one of you living in the united states. wall street seems to be bullish about a deal, the dow is up 194 points at this hour. we begin our coverage with libby casey who is on capitol hill. libby, talk that a deal could soon be reached within the hour, but we have been here before. >> reporter: right. we think this is not just seay deja vu all over again, dell. we are anticipating the senate to unveil they have been working on. chaplain black said there is a small light at the end of a long large tunnel. the deal we're expecting to see the senators come out with, is

something we talked about a couple of days ago, and we saw that put on hold as the house scrambled to some up with their plan. it is raising the debt ceiling until january, and one small portion on the health care law. what we're seeing today is a lot of closed door meetings. trying to get people on board and do a headcount. >> libby a lot of people are going to be scratching their heads this? this is a deal that starts in the senate but will be voted on first by the house. why? >> reporter: right. the senate can start bills, it

just would take so much longer to see it go back and forth. it could go a lot quicker if the house can pass this bill itself. we're hearing speaker boehner, we're hoping to see him on the floor, and that will give us a sense of if we get that green light and if that intil going to be able to come to the house first. it would get the process moving a lot faster. >> and ted cruz has been threatening some type of action that might be able to delay things further. is this cruz first? >> reporter: the senate has the filibuster and things where one or two members can hold up the process. but a lot of republicans are reaching out and saying, hey, guys don't screw this up. we want to see this move

forward. so we're hearing from staffers that there is not an anticipation that cruz and lee will try to stall things or slow things up. that's important, because in order to move forward in a quick manner, the senate has to agree to a unanimous consent. so there is a way that this could all get wrapped up over the next 24 hours, as long as we can see these quick votes. and the senate, if everybody gets on board, that's the one way, the one time when things can move forward quickly. >> we're watching harry reid right now. i know you want to listen to what they have to say, so we'll let you get back to there. as for wall street, it certainly seems to be pleased with the news that is coming out of washington. stocks taking off from the opening bell on the possibility that a deal could be imminent.

the dow holding on to its triple digit gains all day long. we turn now to john terrett, and john the numbers in positive territory all morning, does wall street know something that main street doesn't? >> reporter: that's the $64,000 question. asian stocks were up, the london market was ahead, but then it slipped back, but this market from the get-go -- i mean it was immediately ahead by 80 points, and it only went down to about 60 points, and now it is up around 90 as you see. it's a fantastic day. so what is the reason for that? i'm joined by allen valdez, he is one of the floor workers here at the new york stock exchange. why is the market so far ahead when you might otherwise have

expected it to be panicking. >> we all knew a deal had to be done. it's too critical not to have it. it seems early this morning there was positive news out of the white house, the senate passed the bill, it went back to the congress, and john boehner said he was definitely going to get the democrat vote on this time and get this passed. that was enough to move the market up, if we can even postpone default unfortunately just until christmas or january, we don't know the exact terms of the bill, but that's enough keep the country running right now. but it's still a shame. you want a long-term deal and now we're going to have drama at christmas. and this is a country that is powered by consumer spending, so now you are bringing the consumer into it right around the holiday season, we could see a bad holiday season. >> reporter: when you were

driving in to work this morning, did you assume -- the burning question is did wall street know something that the rest of us didn't, or is the it just wall street separating the politics and taking a common sense approach? >> i think wall street took the common sense approach. we felt we were not going to miss the debt ceiling. we have raised the debt ceiling every year since 1979. so it was just politics. and we knew they wouldn't take us over the cliff it was too critical. we have a big bond auction tomorrow, $100 billion. if that were to fail it would be total havoc. halloween we have a huge debt due, so there was no way this was going to continue. that's why you never really saw

the market fall off. we felt all along it was just politics playing it's a out, which was just drama, and it would work out. >> thank you very much indeed. that is alan valdez from dmv securities. dell back to you. >> john thank you very much. and your guest may have been ahead of himself a little bit. they have not done exactly what he said they have done, but we are expecting them to do it. markets in europe and asia also reacting to the situation? washington. phil joins live in london. how are the european and asian markets reacting to possible news in the senate? >> reporter: well, they haven't really been shook too hard by this. there is a general sense that as

you heard on wall street, there's a general sense here that there must be some sort of deal that will be reached before the u.s. congress -- senate takes the country off of that cliff. so we see here in britain the markets are slightly up, over in germany as well. the nika ended up slightly up, but no massive shake within the international markets. >> and phil, absent an an agreement, how are the markets in europe and asia, how are those governments preparing for a potential u.s. default? >> well, there is obviously in the back of a lot of people's deminds the possibility that there might be a default. we have heard here in london why the economic sector, there has been some large scale selloffs

of u.s. treasury bonds, so people are conscious of the fact that despite the kind of rational opinion over here that there must be some sort of deal, they are aware that politics is a tricky mistress, and they might go crazy and default. so they are hedging their bets, but generally as i say, dell, they are thinking that there will be a deal, but the damage that has already been done, certainly to the u.s. reputation, that can't be measured in dollars and cents or even euros. phil thank you very much. there is a measure being advanced in the senate that they are now sending over to the house for a vote. it is expected that the house be bipartisan support will vote on that bill, sending it back over to the senate where it is

expected to pass the senate, and then head to the white house for the signature of the president. that being the house on the left, and the senate on the right. once that happens this entire debacle could be over, but we say this again, we have been here before. if you need further proof that all of you are fed up, take a look at this poll. nearly three-quarters of american voters want to see most members of congress booted out of office completely in 2014, but for most members that doesn't apply to their representative. 38% say they would like to say their own representative replaced. tonight ali velshi will be hosting a special edition of "real money with ali velshi" live from washington, d.c. he'll be talking about the

financial implications in washington and how it directly impacts your wallet. nuclear talks between iran and global leaders have just wrapped up in geneva. the hope is to bring an end to the decade old deadlock. >> building on the positive atmosphere, the foreign minister of iran presented a proposed outline which is being carefully considered by the e-3 plus 3. >> stephanie: -- there are no reports of damage after an earthquake struck papua new guinea.

a tsunami is unlikely to form experts say. and eastern india now dealing with flooding left behind by cyclone phailin. thousands of people remain stranded, the government working to get food and aid to the effected areas. and in japan at least 17 people are dead after typhoon wipha lashed that country's coast. the effected island is south of tokyo. the japanese government promising to do all it can do to help the survivors and find those still missing. eboni deon has been tracking the typhoon. eboni? >> we're still dealing with active conditions as far as the tropics are concerned, although

wipha has moved significantly. it is now lifting well north of japan, but still wind gusts being felt north of the nation. but mostly clouds left there, and that's good news because now the mess can begin cleanup. nari weakened by still the remanents over parts of thailand. and south and west of guam we have been watching this storm that. it is expected to make a curve towards the north and then eventually close in on southern parts of japan in the next few

days. dell? >> eboni thank you very much. you are looking at a split screen, the house on the left and the senate on the right. tonight is the debt ceiling deadline. both sides say they are now closer to a deal. the latest is straight ahead. plus it is decision day in new jersey voters rushing to the polls to fill a high-profile seat in the senate. to your money real. real money with ali velshi tonight - 7 eastern on al jazeera america that's all i have an real money.

victoria azarenko on august 20th, al jazeera america introduce

recapping our top story at this hour, senate leaders are said to be closer to a deal that would reopen the government and raise the debt limit to avoid default. the house and senate would vote on the plan. you are looking at the senate chambers, and if body language is any indication it appears it isn't as tense as it has been the last couple of days. we're awaiting word at this hour from senate minority leader mitch mcconnell from kentucky

who is expected to be the one who announces that a deal has been made. wall street meanwhile welcoming word of a potential agreement. the dow has been in triple digits for most of the day. right now up 200 points. here is senate majority leader, harry reid. >> a default on the nation's bills. compromise we reached will provide our economy with the stability it desperately needs. it's never easy for two sides to reach consensus. this time was really hard. but after weeks spent facing off across a partisan divide that often seemed too wide to cross, our country came to the brink of a disaster, but in the end political adversaries set aside their differences to prevent that disaster. i thank the republican leader for his diligent efforts to

reach this important agreement. republican leader's cooperation is essential to reach an accord that could pass both chamers of kong and be signed by president obama. as part of our agreement in order to ensure that congress continues the work of setting this country on a path of fiscal sustainability, we'll set our country on a long term path to fiscal sustainability. at present i know that some say that's going to be hard, but what we do is hard here, and this is really hard, but i think we can get it done. the committee member selected must have open minds, be willing to exert every option. this conference committee, lead by chairman murray, and chairman ryan which produced the negotiated budget resolution in

december is an appropriate place to discuss our differing views. this legislation also funds the government through january 15th, and averted default through february 7th, during which time we can work toward a long-term budget agreement that prevents these crises, and this ends a standoff that ground the government to a halt this fall. this is a time of reconciliation. i look forward to working with my colleagues on both sides of this great capitol, to pass this remarkable agreement which will protect the long-term health of our economy and avert a default on our nation's debt, and allow us to set a foundation for economic expansion. what we have done is sent a message to americans, from every one of our 50 states, but in

addition to that, to the citizens in every country of the world, that the united stateslies up to its obligations. now congress must return to its most important job, fostering economic growth and protecting middle class families. i appreciate through all of this the steady hand of president obama who helped guide us to this conclusion, i'm optimistic that the spirit of compromise that has taken root will endure. i do know this, senator mccownal -- mccownal and i have sat in very, very serious discussions the last few days. we're going to do everything we can to change the atmosphere in the senate, and accomplish things that need to be done for our country. >> you have been listening to senate majority leader harry reid. now this is senate minority leader, mitch mcconnell.

>> it's my hope that today we can put some of those most urgent issues behind us. after yesterday's events, the majority leader and i began a series of conversations about a way to get the government reopen and prevent default. i'm confident we'll be able to do both of those things later today. crucially i'm also confident that we'll be able to announce that we're protecting the government's spending reductions that both parties agreed to, and that the president signed into the law. that has been a top priority for me and my fellow republicans. and it has been worth the effort. some have suggested that we break that promise as part of this agreement, some have said washington needs to spend more, that we need to raise taxes, that we need to just tax our way to prosperity and balance, but

what the bca showed is that washington actually can cut spending, and because of this law, that's just what we have done. for the first time since the korean war, for the first time since the korean war, government spending has declined for two years in a row. the first time in 50 years. and we're not going back on this agreement. there is a lot more we need to do to get our nation's fiscal house in order. hopefully once we have gotten past the drama of the moment, we can get to work on it. but for now, let's not understate the importance of the budget control act or the importance of the fight to preserve it. this legislation is the largest spending reduction bill of the last quarter century, and the largest reduction bill since 1981 that didn't include a tax

hike. preserving this law is critically important to the future of our country. throughout this debate the public has rightly focused on obamacare for good reason. this law is ravaging our economy, killing jobs, driving up premiums, and driving people off of the health care plans they have and like in droves. it's -- it's a disastrous rollout is a sign of even worse things to come, and the refusal to delay it reflects a stubborn idealogical position, and republicans remain determined to repeal this terrible law, but for today, for today, the relief we hope for is to reopen the government, avoid default, and protect the historic cuts we achieved under the budget control act. this is far less than many of us had hoped for, frankly, but it's

far better than what some had sought. now it's time for republicans to unite behind other crucial goals. madam president i yield the floor. that being senate minority leader mitch mcconnell talking about the deal that it appears is about to be voted on on the floor of the united states senate. to give you a recap of what was said, it appears that the bill will fund the government, end the shutdown, and fund the government until january 15th, which takes us through the holiday season. as far as the default deadline, that would be avoided and it would be extended until february 7th. sequestration also appears to have been part of the equation as well, and i'm going to ask libby casey as to whether or not the budget control act is the

equivalent of those draconian cuts that became known as sequestration. checking the numbers right now, wall street has been ahead of the story all day. right now the dow continues to be up 190 points. that is off of its highs earlier in the session, but it appears that wall street has been confident that the situation in washington would resolve it's a, and in fact that appears to be what we are seeing on the floor of the united states senate right now, which is a compromise by all accounts. we also saw the rhetoric was toned down considerably. harry reid saying that they have been working throughout the evening -- in fact all night long to come up with this compromise. he said that tough choices were made on both sides of the aisle. i turn now to libby casey on capitol hill. libby these cuts that were put into place as a result of

sequester are now part of this package that will be forwarded on to the house and then to the president's desk. >> reporter: it's my understanding they will put together this group that will be working together. and we have breaking news for you. one question we have really been wondering is will sen not ted cruz put the brakes on this process? he is saying he will not do that. he says he will not vote for this bill, he does not support it, but he will not stall or delay. he says there is nothing to be gained from that at this point. so that's big news, because what that means is that the senate could likely reach unanimous consent to move the process along faster. that's key because that gets us closer to hitting some crucial votes before we hit that debt

limit deadline. >> january 15th, the government is funded until that point, february 7th is the new debt ceiling deadline. are we confident that this will pass the senate and clear the house? [ laughter ] >> reporter: well, i can say -- not that we have a horse in this game, dell, but anything can happen here, but, yes, it's looking like this will go forward, so -- because we're hearing from leader mitch mcconnell, the top republican in the senate that he is green lighting this. we have done our own headcount of members of the republican party in the senate, and enough of them are supporting it, so we have got that. the question was always would it be able to pass through the house, and as long as speaker boehner is willing to let it go to the floor for a vote, it does

look like it will pass. so it looks like the u.s. will be able to get this done and not hit that milestone marker which would be, of course, unprecedented. i can't promise you anything, dell, but it looks like things are really moving forward you. >> libby casey, once again the situation on capitol hill appears that finally there has been movement. and the deadlock may have just ended. both saying this, the government will be open, funded all the way until january 15th. the debt ceiling deadline being extended until february 7th, but it still has to be voted on in the senate and house, and then it will go before the president for his signature. we continue to follow all of the events that are unfolding in the

nation's capitol. "real money with ali velshi" live from washington tonight. we're back at the top of the hour.