Morning Money Memo…
Another massive auto industry safety recall just got bigger. Honda, one of eight manufacturers affected by problems with a supplier's air bags, is expanding its recall by as many as one million more autos in California. The air bags made by the Japanese firm Takata could explode in a crash, sending metal shards that can cause injuries to drivers and passengers. In recent weeks Honda has ordered four air-bag recalls involving a range of cars and SUVs as a precautionary measure. Takata "has said the propellant inside the inflator was not properly prepared and was too powerful," reports The New York Times.
It's just the thing for helicopter parents. LG has come up with a new plastic wearable wristband called the KizON which would allow parents to track their child's movements, and listen-in on what's going on. Using Wi-Fi and GPS, KizON's one-step direct calling feature gives children the ability to call home with a single button - and vice versa. If the child doesn't pick up within 10 seconds, the device will automatically answer, letting mom and dad listen in on what's going on in the background. The large plastic wristbands may be controversial. They go on sale in South Korea tomorrow and LG plans to introduce KizONs in North America and Europe later this year.
Strong earnings from Alcoa: the first big company to report second quarter numbers. The big aluminum maker made $138 million in profits. In the same quarter last year Alcoa lost $119 million. Alcoa has struggled in recent years with low aluminum prices and has increased its focus on making sheets and other products for manufacturers of airplanes and autos, which value aluminum for its light weight.
A global study on the financial knowledge of 15-year-old boys and girls puts the U.S. in the middle of the pack. The Organization for Economic Cooperation and Development researched 18 countries. Kids in Shanghai had the highest average score. An OECD official says Shanghai schools identify students who are struggling and provide the support they need to be successful.
Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesnow