Illnesses linked to recalled beef
San Francisco – Health officials in three Western states said Friday at least 28 people have reported illnesses tied to recalled ground beef that may be tainted with salmonella.
On Thursday, Fresno-based Beef Packers Inc. recalled nearly 826,000 pounds of ground beef produced from June 5-23. The U.S. Department of Agriculture’s Food Safety and Inspection Service says the beef was sent to retail distribution centers in Arizona, California, Colorado and Utah, with some sold at Safeway Inc. and Sam’s Club.
Friday, the department confirmed that California, Colorado and Wyoming have reported illness linked to the recalled beef.
AIG reports profit, but forecast rough
New York – American International Group Inc. said it had its first profitable quarter since 2007 – and warned that it still has plenty of repair work to do.
The troubled insurer said Friday it earned $1.82 billion in the April-June quarter as some of its soured assets regained value. But its core insurance business deteriorated sharply amid the recession.
And AIG cautioned that unwinding its $1.3 trillion worth of derivatives will take a long time, and that future results will be volatile as it accounts for its restructuring.
Investors appeared to focus on AIG’s profit, which included $311 million, or $2.30 per share, for common shareholders. The government owns about 80 percent of the company because of the bailout. AIG shares jumped $4.61, or 20.5 percent, to close at $27.14.
Consumers still reducing debt
Washington – Consumers paid down their credit cards and cut other debt in June for the fifth straight month as they rebuild savings battered by the recession.
Outstanding U.S. consumer debt fell by $10.3 billion, or 4.9 percent at an annual rate, to $2.5 trillion, the Federal Reserve said. That’s a much steeper cut than the $4.7 billion analysts expected, according to Thomson Reuters.
June’s reduction follows a 2.6 percent cut in May and a steep 8.2 percent drop in April, when consumers reduced their borrowing by $17.4 billion.
Widespread job losses, declining home values and reduced stock portfolios have spurred Americans to spend less and save more.
Target to run its own Web site
Minneapolis – Discount retailer Target Corp. said Friday that it will build and operate its own Web site starting in 2011, ending a 10-year deal with Amazon.com Inc. under which Amazon ran Target.com.
“The strength of Amazon’s technology and fulfillment services has been a contributing factor in Target.com’s success,” Steve Eastman, president of Target.com, said in a prepared statement.
“However, to deliver a customized multi-channel experience for Target’s guests, we believe it is in Target’s best interest going forward to assume full control over the design and management of Target’s e-commerce technology platform.”