Reuters Business Summary

Paulson says U.S. banking system sound

WASHINGTON (Reuters) - The U.S. banking system is fundamentally sound despite the highly publicized IndyMac (IDMC.PK: 行情) failure, Treasury Secretary Henry Paulson said on Sunday, as he listed financial system stability as his top economic priority. "Our banking system is a safe and a sound one," Paulson said during an advance taping of CNN's "Late Edition."

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.

Economic woes need "months" to recover: Paulson

WASHINGTON (Reuters) - The economy will need months to recover from a growth slowdown caused by a home mortgage crisis, turmoil in financial markets and high energy prices, Treasure Secretary Henry Paulson said on Sunday. Paulson also told CBS television's "Face the Nation" he was optimistic Congress will approve the Bush administration's request for authority to lend money to the troubled mortgage giants Fannie Mae (FNM.N: 行情) and Freddie Mac (FRE.N: 行情).

Dow, Kuwait to base joint venture in Michigan

DUBAI (Reuters) - An $11 billion joint plastics venture between Dow Chemical Co (DOW.N: 行情) and a unit of Kuwait Petroleum Corp will be based in Michigan, the two companies said in a statement on Sunday. The venture will be named K-Dow Petrochemicals and the chief executive will be James Fitterling, currently business group president at Dow's plastics division, the companies said.

Wal-Mart's fashion show previews back-to-school

SAN FRANCISCO (Reuters) - Wal-Mart Stores Inc (WMT.N: 行情) presented a colorful, casual line of youthful looks for kids and teens on Saturday at a fashion show that previewed the mass-market chain's new low-cost offerings for back to school. The world's largest retailer has been careful not to accentuate the fashion quotient in its clothing offerings this year ever since a disastrous push into more stylish gear in late 2005 alienated its core customers looking for basics.

Web pioneer Gross revitalized by green energy

LOS ANGELES (Reuters) - In 1973, when Bill Gross was 15 and cars were lined up at every gas station in Southern California, the aspiring engineer wanted to do something about spiking energy prices. So he figured out how to build parabolic concentrators and Stirling engines to capture the sun's energy, selling the plans for $4 apiece through ads in "Popular Science" magazine.

Asia takes aim at Europe in luxury yacht building