Apple (AAPL) IOS 8 to Keep Data Private, Even From Police

Morning Money Memo…

Apple is taking a tough new line on the security of its mobile devices, saying its new iOS 8 operating system will keep data private, even from police. The engineering of the new system, says Apple, makes it impossible for the company to turn over data from most iPhones or iPads to police - even under a search warrant. Apple's announcement is an attempt to answer claims by some privacy advocates that tech companies have participated in the government attempts to sweep up personal data. "Rather than comply with binding court orders, Apple has reworked its latest encryption in a way that prevents the company - or anyone but the device's owner - from gaining access to the vast troves of user data typically stored on smartphones or tablet computers," reports The Washington Post.

Apple's new HealthKit app that will keep track of fitness data is being delayed because of a bug in iOS 8 software. Apple says it hopes to have HealthKit apps restored to its app store by the end of the month. Affected apps include Carrot Fit, WebMD and AskMD. Apple didn't provide details on what went wrong. Apple's new iPhones have sensors to monitor fitness activities, and its upcoming Apple Watch will have a heart-rate monitor.

Amazon founder Jeff Bezos is planning to build a rocket engine that would eventually replace the Russian mainstay used in many American unmanned launches. United Launch Alliance, a collaboration of two aerospace giants, says it'll pay Bezos' Blue Origin space firm to develop new rocket engines. In about four years, the launch alliance hopes to start using the new engines in Delta and Atlas rockets.

Alibaba's stock offering is a wakeup call about an emerging wave of technology giants in China's state-dominated economy. Until now, Chinese companies that made a splash in global stock markets were state-owned banks and oil companies. Private sector tech companies such as Lenovo and Baidu are highly successful and they weren't created by government decree. Last year Lenovo overtook Hewlett-Packard to become the No. 1 global PC maker. Baidu ranked No. 31 on Forbes magazine's latest list of the most innovative companies. Huawei Technology unseated Sweden's Ericsson in 2012 as the biggest maker of network gear. Alibaba has become a huge player in e-commerce. Its shares are set to begin trading tomorrow in New York after an initial public offering that is set to be the biggest ever, possibly raising $25 billion.

Women and minorities are largely shut out of the ranks of TV series directors, according to a new study. The Directors Guild of America says employers have made no significant improvement in diversity among TV directors in the last four years. White males directed the vast majority of the more than 3,500 cable, broadcast and high-budget online episodes made for the 2013-14 season, according to the study. In a statement, Directors Guild President Paris Barclay said it can be "shockingly difficult" to persuade those who control industry hiring to make even small improvements. The Associated Press says major broadcast networks did not respond to requests for comment.

Lincoln Logs is coming home to the USA. The toy has been made in China but in the future about 80 percent of the production - including the wood parts - will be made by Pride Manufacturing at its plant in Burnham, Maine. The plant employs about 130 people. The company anticipates adding up to 10 jobs with the Lincoln Logs contract.

Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesnow