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Market Relief Maybe Temporary Despite Debt Relief


NPR's business news starts with global markets reacting to the debt deal.

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INSKEEP: Financial markets started this day higher, as expected, on news that President Obama reached an agreement with congressional leaders to end the impasse over the U.S. debt ceiling. But the rally is short-lived. The Dow is now down about 124 points, as of a couple of minutes ago, down close to 12,000 at the moment - European stock prices also lower.

The turnaround came after the release of a gloomy report on American manufacturing. There was also concern about whether Congress is really going to approve this deal. Even if Congress does, some analysts say the U.S. will still face a possible downgrade by credit agencies because of the state of the economy.

RENEE MONTAGNE: One of the biggest banks in the world plans to slash 30,000 jobs. HSBC said it's eliminating the positions to cut costs. Some of those job losses are here in the U.S., where the British bank plans to sell off nearly half of its branches. Transcript provided by NPR, Copyright NPR.