Morning Brief: Over to you, House

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The U.S. Senate easily approved the $700 billion bailout bill by a 74 to 25 margin. Both Democratic presidential nominee Barack Obama and his Republican rival John McCain voted “yes.”

Now, it’s up to the House of Representatives to pass it after rejecting an earlier version on Monday. Here’s the new draft text (pdf).

The 451-page bill contains a number of “sweeteners” designed to bring along reluctant House members. Tax provisions, such as a tax break for Hollywood studios, added more than $100 billion to the legislation’s cost.

It seems to have worked. “I’m inclined to hold my nose and vote yes,” said John Shadegg, an influential Republican congressman from Arizona.

“Frankly, we really don’t have much flexibility, and this is important to do,” added House Majority Leader Steny Hoyer.

But Texas Republican Joe Barton was less impressed. “The bailout legislation that the Senate is sending back to the House is a fraternal twin to the one I voted against on Monday — meet the new bill, same as the old bill,” he complained.

“The Senate measure has changed my position from ‘No’ to ‘Heck no,'” said Texas Democrat Lloyd Doggett.

A vote could come as early as Friday.

Economy

Warren Buffet plans to invest $3 billion in General Electric.

The auto industry is in dire straights, and new global data on manufacturing indicates that the real economy has begun to slump.

Decision ’08

Obama is gaining in the polls, thanks largely to the financial crisis.

American voters are growing increasingly skeptical of McCain’s running mate Sarah Palin, a new poll finds.

Americas

Mexicans working in the United States are sending home less money these days. In fact, migration to the United States is quickly slowing.

Canadian PM Stephen Harper’s opponents are using George W. Bush against him.

U.S. cities are more worried about crime these days than terrorism, USA Today reports.

Asia

NATO’s top commander in Afghanistan plans to step up raids on drug traffickers and the warlords who love them.

Both houses of the U.S. Congress have now passed the nuclear deal with India, to the Indian government’s delight.

U.S. nuclear envoy Christopher Hill is staying in North Korea an extra day to try and rescue the six-party disarmament talks.

Middle East and Africa

Zimbabwe’s economic implosion is “gaining velocity,” according to the New York Times. Its food situation is “grave and deteriorating,” the BBC reports.

Deadly bombs punctuated the end of Ramadan in Baghdad, killing more than 16 people.

Some fear a backlash after the Iraqi government began taking charge of Sunni “citizen patrols” Wednesday.

Europe

Heading for a deep recession, Europe is considering its own bailout package, but some European leaders are skeptical of the French-led plan.

The EU is putting together an anti-piracy force to handle Somalia.

Ukrainian President Viktor Yushchenko had to make an emergency landing, then seized his chief political rival’s plane.

A report introduced in the British House of Lords calls for the legalization of cannabis.

Today’s Agenda

Alaska Gov. Sarah Palin debates Delaware Sen. Joe Biden in the first and only U.S. vice presidential debate. It airs at 9 p.m. ET.

Britain’s surging conservatives have begun their party conference.

The International Monetary Fund publishes four chapters of its twice-annual World Economic Outlook. There will be blood.

German Chancellor Angela Merkel is visiting Russian President Dmitry Medvedev in St. Petersburg.