Reuters Business Summary

Oil up over $1 on Iran talks, Mexico Gulf storm

PERTH (Reuters) - Oil rose towards $130 a barrel on Monday after its biggest one-week slide on record as inconclusive talks between Iran and world powers over Tehran's disputed nuclear programme dimmed prospects of ending the row. Prices were also lifted by worries about Tropical Storm Dolly, the first storm of the 2008 Atlantic hurricane season that could disrupt oil production in the Gulf of Mexico.

Banks sound but economy to take time: Paulson

WASHINGTON (Reuters) - The U.S. economy needs months to recover from its slowdown, but the banking system remains sound despite a home mortgage crisis that could cause more problems, Treasury Secretary Henry Paulson said. Paulson also said on Sunday morning news programs he was optimistic Congress would approve the Bush administration's request for authority to shore up the troubled mortgage giants Fannie Mae (FNM.N: 行情) and Freddie Mac (FRE.N: 行情).

Economy not looking so bad, as viewed from the farm

KANSAS CITY, Missouri (Reuters) - The U.S. housing crisis looks pretty distant when viewed from the cornfields of middle America, although land values pushed up by record commodity prices also evoke past booms that ended in bust. Farm prices in the corn belt jumped an eye-popping 20-plus percent last year. Economists at the Kansas City Federal Reserve say that so far, the gains seem to be based on anticipated profits from future harvests, not speculation.

Freddie Mac files with SEC, first step to capital

WASHINGTON/NEW YORK (Reuters) - Freddie Mac won approval from regulators on Friday to sell the stock needed to overcome mounting losses, and the Wall Street Journal said the mortgage finance company may seek $10 billion. The approval clears the way for the company to fulfill its promise in May to raise $5.5 billion to bolster its balance sheet, allowing it to continue its support of the deflating U.S. housing market.

Fortress mortgage fund down about 30 percent: WSJ

NEW YORK (Reuters) - A Fortress Investment Group LLC (FIG.N: 行情) fund, the Fortress Mortgage Opportunities Fund, is down about 30 percent three months after the firm raised funds for it, the Wall Street Journal reported on its website on Sunday. Fortress raised $560 million for a fund this spring by buying triple-A-rated residential mortgage-backed securities, the paper said.

Australia's Flight Centre sees 40% profit growth

SYDNEY (Reuters) - Australian travel retailer Flight Centre Ltd (FLT.AX: 行情) confirmed its full-year pretax profit will jump about 40 percent, in line with its previous forecast, boosted by healthy global sales, and forecast further growth in 2009. Flight Centre said on Monday it expected to report a profit of around A$212 million ($206 million) in the year to June 30. It will announce its results on August 26.

Dow, Kuwait to base joint venture in Michigan