Justice scrutinizing high-speed trading

The Department of Justice is investigating high-frequency stock trading to see if any of the practices violate insider trading laws, U.S. Attorney General Eric Holder said Friday.

Brokerage firms use high-frequency trading to get a jump on their competitors. Powerful computers analyze market information and then execute buy and sell orders for stocks within a fraction of a second. The practice has come under increasing scrutiny in recent months. The FBI confirmed this week that it has been investigating high-frequency trading firms for about a year. The Wall Street Journal reported Tuesday that investigators were examining the practice of placing a group of trades and then canceling them to create the false appearance of market activity.

States restricting strong new painkiller

BARRE, Vt. » State officials around the country are rebelling over a powerful new painkiller that law enforcement and public health authorities fear could worsen the nation’s deadly scourge of heroin and prescription drug abuse.

On Thursday, Vermont Gov. Peter Shumlin announced an emergency order that would make it harder for doctors to prescribe Zohydro, an extended-release capsule that contains up to five times the amount of narcotic hydrocodone previously available in pills.

Nest disables feature on smoke alarms

NEW YORK » The high-tech home monitoring device company Nest Labs is disabling a feature on its smoke alarms due to the risk that owners could unintentionally turn off the device with the wave of a hand. Nest was acquired this year by Google Inc. for $3.2 billion.

Nest developed technology which it calls the Nest Wave that allows owners to turn off the Nest Protect: Smoke + Carbon Monoxide alarm at a distance, among other things.

Founder and CEO Tony Fadell said on the company’s website, however, that a "unique combination of circumstances" could delay an alarm going off in the event of a real fire.

Philip Morris to halt Netherlands production

NEW YORK » Philip Morris International will end cigarette production at its factory in the Netherlands as Europeans break the smoking habit for both financial and health reasons. The company said Friday that it has started talks with employee representatives on a proposal to end production at the factory in Bergen op Zoom. If production is ended, it could affect about 1,230 of the current 1,371 employees.

Philip Morris International Inc., based in New York, reports that in the past four years, cigarette volumes have weakened in Europe due to economic softness, illicit trade and as consumers shifting to cheaper alternative products. The company said that volume recovery is highly unlikely.

Judge considers GM recalled cars request

CORPUS CHRISTI, Texas » A federal judge in Texas said she would consider arguments made Friday and await additional information, before deciding whether to grant an emergency injunction that could force General Motors to tell owners of more than 2 million cars with a defective ignition to not drive them until repaired.

U.S. District Judge Nelva Gonzales Ramos said she had not had time to thoroughly read a new brief by the plaintiffs filed only shortly before the hearing. About 40 people listened to more than two hours of arguments and testimony.

A flawed ignition switch in Chevrolet Cobalts, Saturn Ions and other small cars allows the key to turn from the "run" position to the "accessory" position, causing the loss of power steering, power brakes and the air bags.

GM admitted to knowing the switches were defective for at least a decade, but didn’t start recalling the vehicles until February. The Detroit automaker has linked the faulty ignition switch to 13 deaths, while others, including the families of some victims, say there have been more. GM CEO Mary Barra told a Senate subcommittee Wednesday that owners can continue safely using the cars if precautions are taken.

Ecko’s ex-licensee files for bankruptcy

NEW YORK » The former licensee for clothing maker Ecko Unltd., which has outlets in Ala Moana Center and Pearlridge Center, is seeking Chapter 11 bankruptcy protection, according to court filings. MEE Apparel and Mee Direct, which sell clothing under the brand names Ecko Unltd. and Unltd., say they have about $30 million in assets and $62 million in debt. They say sales and profitability have been declining since the start of 2009 because of the recession and changes in fashion trends. They made the filing in the U.S. Bankruptcy Court for the District of New Jersey Wednesday.

The Ecko Unltd. brand itself didn’t file for bankruptcy, says Jennifer Hoffman, a spokeswoman for Iconix Brand Group Inc. A new Ecko licensee has already begun delivering product to retailers, she added.

ON THE MOVE

The GIFT Foundation of Hawaii, dedicated to supporting and empowering charitable groups in the islands, has announced its co-chairs for the GIFT Foundation’s annual fundraising event on Oct. 24:

» Jon Bryan is owner of JB Brands, a marketing firm.

» Emily Kawa­shima is a partner with Kawashima Waters and Lum.

Ulupono Initiative has announced two new members: 

» Jesse Cooke as senior investment associate. Before joining Ulupono, Cooke was a member of the corporate finance groups of the Walt Disney Co. and Hawaiian Airlines.

» Noreen Reimel as communications manager. Reimel has 17 years of experience in local media and public relations and previously served as a chief communications officer for the Hawaii State Energy Office.

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