BRIEFCASE.

Byline: -- Staff and Wire Services

Warning issued about carrots

CITY OF INDUSTRY -- "What's up, doc?"

Bugs Bunny and all others who like carrots were warned Thursday not to eat bagged, fresh baby carrots distributed to Kroger/Ralphs and Trader Joe's grocery stores in California by a city of Industry-based food company.

The packaged carrots, distributed by the Los Angeles Salad Company, may be contaminated with shigella, a bacteria that can cause bloody diarrhea, said California Department of Public Health Director Mark Horton.

The product, sold in seven-ounce plastic bags labeled "Genuine Sweet Baby Carrots," was sent to Kroger/Ralphs stores under the Los Angeles Salad Company brand name and to Trader Joe's stores under that chain's own brand name.

The food company recalled the product with sell-by dates of Aug. 16 and earlier. The product, which was imported from Mexico, has been distributed to other North American stores.

There are currently no reports of illness associated with the product in California.

Four persons in Canada became ill after eating the carrots earlier this month. No deaths have been reported.

"Food safety is a cornerstone of our business and our products are subjected to rigorous testing," said a statement posted on the Los Angeles Salad Company's Web site on Tuesday. "A thorough investigation is under way, the results of which will be available later this week."

Food contaminated with the shigella bacteria may not look or smell spoiled. Persons who are infected with the bacteria may develop diarrhea, fever and stomach cramps starting a day or two after they are exposed. The diarrhea may be bloody.

The illness usually lasts from five to seven days. In some people, especially young children and the elderly, symptoms can become severe and require hospitalization.

Consumers who have purchased the recalled carrots should throw them away or return them to the store from where they bought them. People who have eaten the carrots and have any symptoms of illness should immediately contact a doctor.

30-year loan rates improve

WASHINGTON -- Rates on 30-year mortgages sank this week to their lowest point since late May, providing a little ray of sunlight for would-be home buyers.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.52 percent. That was down from 6.62 percent last week and was the lowest rate since the week that ended May 31, when rates stood at 6.42 percent.

The moderation provides a dose of welcome news for prospective homebuyers, some of whom also may be facing a situation of harder-to-get credit. In mid-June, rates on 30-year mortgages climbed to 6.74 percent, the high for this year.

Rates on 15-year fixed-rate mortgages averaged 6.18 percent, down from 6.30 percent last week.

For five-year adjustable-rate mortgages, rates dipped to 6.34 percent, from 6.35 percent last week. Rates on one-year adjustable-rate mortgages fell to 5.60 percent, compared with 5.67 percent last week.

New claims dip for jobless funds

WASHINGTON -- Fewer people signed up for jobless benefits last week, an encouraging sign that most businesses aren't resorting to big layoffs amid a housing slump and the painful credit crunch.

The Labor Department reported Thursday that new applications filed for unemployment insurance dipped by 2,000 to 322,000 for the week that ended Aug. 18. It marked the first drop in new claims in roughly a month.

The showing was a bit higher than the 320,000 analysts were forecasting. Still, the level of claims suggested that the employment climate remains in fairly good shape despite problems in housing, tighter credit, and turmoil on Wall Street in recent weeks.

British, Korean airlines fined

WASHINGTON -- Two major airlines were fined $300 million apiece Thursday after admitting they conspired to fix prices on international flights and agreeing to help prosecutors investigate other airlines.

British Airways PLC, Britain's largest airline, and Korean Air Co., South Korea's national carrier, pleaded guilty to antitrust conspiracy charges. They acknowledged colluding with rivals over cargo rates and fuel surcharges, which were added to fares in response to rising oil prices. That meant higher costs for international shippers and passengers.

U.S. District Judge John D. Bates said the case "involved considerable commerce and reflected long-term and widespread conduct involving major airlines and players."

Both saw their potential fines reduced because they cooperated with Justice Department investigators.

Making toy list, checking twice

After a series if recalls of Chinese-made toys aver hazards to children, Wal-Mart Stores Inc. is stepping up testing and safety reviews of the toys it sells to reassure consumers ahead of the critical holiday season.

Wal-Mart's top toy executive said Thursday the retailer will ask manufacturers to resubmit testing documentation for toys already on the shelves or in shipment, so that Wal-Mart can doublecheck the results.

The world's largest retailer is also increasing the number of toys tested at independent labs by about 25 to 50 percent, or an average of 200 additional items daily.