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Associated Press

Posted on October 7, 2013 at 2:01 PM

Updated Monday, Oct 7 at 2:00 PM

BUDGET BATTLE

UPDATE: Officials: Senate Democrats working on debt limit bill

WASHINGTON (AP) — Officials say Senate Democrats intend to introduce legislation by the middle of the week that would raise the nation's debt limit without the type of unrelated conditions Republicans have said they want to add.

The emerging measure is likely to allow President Barack Obama to raise the borrowing limit on his own authority, although it could be blocked if both houses vote to do so.

Republicans have said they want long-term deficit cuts or reforms to benefit programs and perhaps a rollback in environmental rules as the price for raising the current $16.7 trillion debt limit.

But Obama has ruled out negotiations on the measure, although he has said he is willing to discuss fiscal and other issues with the GOP once the weeklong partial government shutdown is over and the Treasury is free to borrow again.

Treasury Secretary Jacob Lew says the government will hit that limit within 10 days, if Congress does not take action.

WALL STREET

Stocks sink as Washington stalemate drags on

NEW YORK (AP) — The stock market is lower as the U.S. government heads into a second week of a partial shutdown with no signs of a budget agreement in sight.

The Dow lost 1.2 percent last week as investors became anxious that the budget stalemate in Washington could bring the U.S. closer to defaulting on its debt. Lawmakers have until Oct. 17 to reach a deal on increasing the nation's borrowing limit.

OBAMA-FEMA

Obama thanks FEMA for work during shutdown

WASHINGTON (AP) — President Barack Obama is thanking workers at the Federal Emergency Management Agency for doing their jobs under "less than optimal circumstances" during the government shutdown.

Obama made an unannounced visit to FEMA Monday as the shutdown neared the one-week mark. Some furloughed employees at the agency were recalled last week and worked without pay to help prepare for Tropical Storm Karen.

The president said FEMA employees remain ready to respond when needed, but their jobs have been "made more difficult." He says the shutdown may actually end up costing taxpayers more money.

Funding for FEMA was among the series of piecemeal spending bills passed by the House last week. The White House has threatened to veto the measures, saying the government should not be reopened one agency at a time.

EGYPT

Egypt says attack in Sinai was suicide bomber

CAIRO (AP) — Egypt's Interior Minister says Monday's attack on a security headquarters in the southern Sinai Peninsula was the work of a suicide bomber.

Mohammed Ibrahim told The Associated Press that another attack on the country's main satellite telecommunications center in the capital appeared to be in retaliation for the killing of more than 50 supporters of the former president in clashes with security forces a day earlier.

One satellite in the center was slightly damaged by a projectile fired from a distance. Communication was not impacted.

The suicide bombing in Sinai's el-Tor town, close to the Red Sea resort of Sharm el-Sheikh, killed three policemen.

Ibrahim also said Islamist militants aim to "distract" and cause instability. He said: "We are at war with them, and they are in their last gasp."

NSA SURVEILLANCE

Gov't seeks delay in NSA case over US shutdown

WASHINGTON (AP) — The Justice Department says that because of the shutdown, it wants a federal court to delay a court case in which the government has said it will reveal more secret documents about the National Security Agency's surveillance program.

In a new filing with the Foreign Intelligence Surveillance Court, the government says that without an appropriation from Congress, Justice Department attorneys and employees are prohibited from working, except in emergencies involving the safety of human life or the protection of property.

The government is seeking a delay in a case involving Yahoo Inc. being required to turn over customer data to the NSA.

Yahoo was among several U.S. Internet businesses identified as giving the NSA access to customer data under the PRISM information-gathering program.

MOTORCYCLE CLUB GUNFIGHT

NEW: Number of wounded increased in biker club attack

FRESNO, Calif. (AP) — Authorities say 13 people were injured during a running gun battle at an annual dance staged by a Central California motorcycle club. An 18-year-old man was killed.

The Fresno County Sheriff's Department said Monday that all the injured people are expected to survive, though some suffered serious wounds.

It initially reported a dozen people had been hurt.

The department didn't release the names of the injured.

No arrests have been made and no information was released on possible suspects.

The gunfire erupted during the Soul Brothers' annual dance, which draws bikers and other motorcycle clubs from around the state. About 500 people were inside the warehouse-like clubhouse when the shooting started.

BOY SNEAKS ON PLANE

UPDATE: Delta reviewing procedures after boy stows away

MINNEAPOLIS (AP) — Airport and airline officials are reviewing video and gathering information as they try to figure out how a 9-year-old boy evaded security and stowed away on a flight from Minneapolis to Las Vegas without a ticket.

Delta Air Lines issued a statement Monday saying it's reviewing its policies and procedures to make sure it doesn't happen again.

Officials say the boy took a light rail train to Minneapolis-St. Paul International Airport on Thursday. They're still not saying how he got past security screeners and gate agents to board the flight, which was not full. The flight crew later became suspicious and handed him over to authorities in Las Vegas.

The Transportation Security Administration says he was screened along with other passengers to ensure that he was not a threat.

CONSTRUCTION CRANE

NEW: NYC crane that dangled during Sandy breaks again

NEW YORK (AP) — A swath of a major New York City street is closed while authorities try to fix a new problem with a construction crane whose boom dangled dangerously nearly a year ago during Superstorm Sandy.

A construction supervisor says the crane is the same one that broke in the storm. Adding urgency to Monday's situation is that it comes during a tornado watch and a high-wind forecast.

Five blocks of West 57th Street in midtown Manhattan is closed as the crane's boom points downward with its load dangling near Carnegie Hall.

City emergency managers said around noon that the load would be lowered manually. That could take hours.

The closure has created gridlock in parts of Manhattan, with traffic jams extending toward Times Square, about 15 blocks to the south.

INDYCAR-FRANCHITTI-INJURED

UPDATE: Franchitti thanks fans for support after wreck

HOUSTON (AP) — Three-time Indianapolis 500 winner Dario Franchitti will remain in Houston for the next few days as he recovers from a frightening crash at the last lap of the Houston grand prix over the weekend.

Franchitti's car went airborne into the fence during Sunday's race. He broke his right ankle, fractured two vertebrae in his spine and received a concussion. He had surgery on the ankle Sunday night and was hospitalized.

Target Chip Ganassi Racing said Monday that Franchitti "will remain in Houston for a few days" and then be taken to Indianapolis for further evaluation.

Franchitti thanked his fans for their support.

The wreck also injured and IndyCar official and 13 fans, including two who were taken to a hospital for treatment.

FOX-MUSLIM MUSEUM

Fox anchor apologizes after Obama gaffe

NEW YORK (AP) — A Fox News Channel anchor has apologized for falsely saying that President Barack Obama had offered to pay for the operation of a museum of Muslim culture "out of his own pocket" during the government shutdown.

Anchor Anna Kooiman made the remark Saturday on "Fox & Friends" during a discussion about closed facilities. She said it didn't seem fair that a World War II monument in Washington was closed, especially in the context of other things funded.

She didn't name her source, but Kooiman appeared to be influenced by a satirical news site that said Obama would use his own money to keep a Muslim culture museum open.

Kooiman tweeted an apology Sunday. It's not clear yet whether the mistake will be addressed on the air.

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