ALBANY, N.Y. – Landlords beware. New York officials say they're retooling leases for state agencies in the economic downturn's soft real estate market and have squeezed out almost $12 million in savings since April.

With 587 property leases that cost more than $245 million annually, the state Office of General Services says it has saved $6.3 million through less expensive lease extensions, $3.4 million from renegotiating existing leases and $2.2 million from stopping unauthorized expenses after 364 audits of landlord energy and property tax charges.

LONDON (AFP) – The stock market closed higher in a half-day session on Thursday, the final trading session of 2009, to chalk up an impressive annual gain of more than 22 percent.

London's FTSE 100 index of leading shares rose 0.28 percent to finish at 5,412.88 points at 1230 GMT, as traders headed home early for the New Year holiday weekend. The market remains shut on Friday and reopens on Monday.

The FTSE has gained 22.07 percent in value during 2009, despite a record recession, as investors drew strength from hopes of economic recovery in the fourth quarter or three months to December.

A recession may not seem like the perfect environment for starting a new law business, but with clients under pressure to manage costs and large firms favoring institutional clients in potential conflicts, dozens of boutiques have popped up offering sophisticated legal expertise at reasonable costs to clients large and small.

Chaffetz Lindsey was just one of many boutiques opened nationally in the last year by former big firm partners. While it is too soon to measure its success, the five partners who departed Clifford Chance say their gamble is working out better than expected.

Chaffetz Lindsey partners launched their firm in May and ever since have been pitching it as a cost-effective alternative to large law firms with a focus in international arbitration, reinsurance and commercial litigation.

WASHINGTON (AFP) – New claims for jobless insurance benefits in the United States fell to the lowest level in 17 months, government data showed Thursday on signs that unemployment at 26-year highs may ease as the economy recovers from recession.

The seasonally adjusted initial claims for unemployment insurance benefits in the week ending December 26 stood at 432,000, a decrease of 22,000 from the previous week's revised figure of 454,000, the Labor Department said.

KUWAIT CITY (AFP) – Most Gulf stock markets on Thursday ended 2009 higher following massive losses in the previous year because of the global economic downturn, but their rebound was halted by the Dubai debt crisis.

After slumping to a year low in the first three months, five of the seven markets made a strong comeback in the third quarter that continued into the fourth with the Saudi, Dubai and Abu Dhabi bourses each adding more than 30 percent.

Barring Kuwait and Bahrain, the remaining five bourses ended the year in positive territory, led by Saudi Arabia which gained 27.5 percent.

NEW YORK (Reuters) – New York City business activity expanded in December for the fifth consecutive month, though at a slower rate than November, while a gauge of business optimism was at its highest in more than three years, according to an industry report on Thursday.

The Institute for Supply Management-New York's seasonally adjusted index of current business conditions fell to 59.7 in December from 62.9 in November. However, it remained well above the 50 level that separates growth from contraction.

Future optimism grew, with ISM-New York's six-month outlook index rising to 80.2 from 74.4 in November, hitting its highest since August 2006.

BEIJING (Reuters) – A former senior Chinese police officer faces investigation on charges of taking massive bribes, official media reported on Thursday, in a development that appears to be linked to a broadening stock manipulation scandal.

Zheng Shaodong, who as assistant minister of public security was in charge of handling economic crimes, was formally dismissed from his post and from the ruling Communist Party, the website of the People's Daily newspaper (www.people.com.cn) reported.

NEW YORK – The stock market closed out a remarkable 2009 with a loss as investors bet the improving economy will lead the government to pull back on its stimulus measures. But stocks still managed their best year since 2003 as they recovered from the financial crisis and recession.

Thursday's trading, which came on extremely light pre-holiday volume, was a fitting end to a tumultuous year. Stocks fell to 12-year lows by early March on investors' increasing pessimism, then rallied on growing signs of recovery in what turned out to be Wall Street's biggest comeback since the Great Depression. In the last day of the year, more signs of healing first pleased investors, then had them concerned about the economy's ability to thrive without government help.

It was a choppy day indeed on this last day of 2009.  As per usual this week, much of that choppiness can be chalked up to much lower than normal volume.  MBS and Tsy's tanked early with the 4.5 down all the way to 99-14 and the 10yr actually cracking the 3.9 mark.    But by the earlier-than-normal end of trade, both had recovered to levels slightly better than their weakest recent closes.  That puts the 4.5 at 99-27, down only 3 ticks on the day and the 10yr note up 4.3 bps to 3.835.  Previous support had been 3.85.

Over the past two weeks, we've tried hard to impress upon you the degree to which this end of year trading may be completely meaningless as far as what lies ahead in 2010.  The holiday season makes it tough also.  It plays a much larger role than you might think in affecting volume and the extent to which current movements suggest true sentiment. 

NEW YORK (AFP) – World oil prices wrapped up a massive 2009 rebound Thursday on a mixed note amid hopes for a global recovery from recession.

Crude oil prices surged 80 percent from a year ago as traders were heartened by mounting evidence that the global economy was on the mend, with the eurozone, Japan and the United States emerging from a fierce recession.

New York's main futures contract, light sweet crude for delivery in February, crept eight cents higher to close at 79.36 dollars a barrel.