NPR 2011-07-22

There are reports that momentum 1 toward a deficit 2-cutting deal is building in Washington, but the White House says there's nothing imminent 3. NPR's Scott Horsley is tracking the negotiations 4. Scott, What's the status on debt talks?

Lakshmi, so far there's been more talk than action, but lots of negotiations are going on both face-to-face and by telephone between the Capitol and the White House. Last night, President Obama met with House Republican leaders, and there are reports today suggesting the resurrection of that Grand Bargain between the president and House Speaker John Boehner. This would be a multi-trillion-dollar deficit-reduction plan, including both spending cuts and some provision for higher tax revenues. But as you say, White House spokesmen are cautioning there're still more hoops 5 to jump through.

Credit ratings agencies are threatening to downgrade the US if Congress fails to raise the debt limit?

That's right, and the president has been doing a series of interviews to urge Congress to take action, including an interview on NPR's Tell Me More program that will air tomorrow. Even as he pushes for a big step to address the long-term deficit, Mr. Obama has to keep his eye on the urgent need to raise the debt ceiling before that August 2nd deadline.

"Ronald Reagan, I think, when he was president, repeatedly talked about how irresponsible it would be to allow the full faith and credit of the United States to be impaired 6 in any kind of way."

Now, Scott, we're also seeing the GOP-led House has taken a weekend off, which has drawn 7 some criticism from the Senate.

That's right. But whatever's happening in plain view, I think there will still be a lot of talking going on behind the scenes.

OK, Scott, thank you. That's NPR, Scott Horsley. Now, we were talking just a moment ago about the credit rating situation as Steve Beckner of Market News International tells us that a top rating agency is warning now that it may have to downgrade US debt.

Whether or when Congress raises the 14.3-trillion-dollar federal debt ceiling to allow the Treasury 8 to keep borrowing is not Standard & Poor's only concern. The bigger issue is what conditions are attached to a higher debt limit. In April, the ratings agency lowered its outlook for US debt from stable to negative. Now, it is warning that any deal to raise the debt ceiling must be accompanied by a credible 9 long-term plan to curb 10 deficit spending and slow growth of the debt. It sees a 50-50 chance US government's rating will be lowered from AAA to AA within three months. For NPR News, I'm Steve Beckner.

Unemployment claims topped 400,000 yet another week, underscoring unrelenting challenges in the jobs market. The Labor 11 Department reports today new applications for unemployment insurance climbed by 10,000 last week to a seasonally 12 adjusted 418,000.

Before the close on Wall Street, the Dow was up 1.2% or 151 points at 12,723.

This is NPR News.

The automaker Chrysler is now free of government control. The US Treasury Department announced today it received the proceeds from the sale of its stake in Chrysler. NPR's Sonari Glinton reports the Canadian government has also sold off its stake in the automaker.

The Italian automaker, Fiat 13, handed over 560 million dollars to the US Treasury and about 140 million to Canada for their stakes in Chrysler. The money is the final repayment 14 of Canadian and US government loans. Those loans were given to Chrysler two years ago. It was part of a bailout to help the Detroit company survive the US current miseries—worst downturn ever. This is the second time Chrysler has had to be bailed 15 out by the government, and it's its second go-round with foreign ownership. Sonari Glinton, NPR News.

A coalition 16 of Alabama civil rights groups is requesting a federal court block a new immigration law due to take effect in September. In a motion filed today in Huntsville, the coalition says the law's unconstitutional. It allows police making traffic stops to detain people suspected of being in the US illegally. The law also requires schools to report their students' immigration status. However, supporters say that tougher measures are needed to crack down on illegal immigration in the US.

Soldiers are being deployed 17 to several cities in the southern African nation of Malawi on a second day of anti-government protests. At least 10 people have died in the unrest.

Britain's Prince Andrew reportedly stepping down as the United Kingdom's trade envoy 18 after coming under fire for a series of controversial connections with leaders overseas. Among them, ties to Libyan leader Muammar Gaddafi, the target of a massive uprising in a country now entrenched 19 in civil war.