What we’re watching Thursday

Shutdown – Debt Ceiling

• Treasury secretary Jack Lew is testifiying to the Senate on how bad things could get for the economy if the U.S. goes into default.

• GOP leaders are weighing a short-term debt limit increase to calm markets and extend their negotiations with President Obama. President Obama has signaled he’s willing to sign.

  – President Obama will meet with Senate Democrats at 1:45 p.m. EDT, and 20 House Republicans at 4:35 p.m. EDT.

• Fidelity, the largest manager of money market mutual funds is dropping short-term U.S. debt.

• National Institutes of Health has admitted 12 critically ill patients to clinical trials, despite the shutdown.

U.S. Economy

• The number of homes going into foreclosure hits 7-year low in the 3rd quarter.

Libya

• The Libyan state news agency reports prime minister Ali Zeidan was seized by gunmen at dawn, then set free. Details were sparse.

• The kidnappers say it was retaliation for disclosure that the Libyan government approved U.S. actions against al Queda.

Nobel Prize

• The Nobel Literature prize is awarded to Alice Munro.