World bids a relieved farewell to a rocky year

Fireworks exploded in a kaleidoscopic shower of light over Sydney's shimmering harbor Wednesday night, as the world's first major city to ring in 2009 celebrated the end of a decidedly rocky year with cheers, beers and a sense of relief. Spectator Randolph King, 63, of York, England, whose retirement fund was gutted in the global financial crisis, summed up the feeling of many across the world as 2008 came to a close: "I'm looking forward to 2009," he said. "Because it can't get much worse." Facing the end of a year that saw global markets come crashing down—taking the world's morale with them—partygoers everywhere struggled to forget their troubles on what is typically a joyous night. In the Philippines, President Gloria Macapagal Arroyo spoke of hope for better days to come, while in Hong Kong, some admitted they were too depressed over their monetary woes to join in the revelry. And in Malaysia, the government—mindful of the shaky economy—opted against sponsoring any celebration at all. In India, many were happy to see the end of 2008, during which the country was rocked by a series of terrorist attacks in several cities culminating in a three-day siege in Mumbai in which gunmen killed 164 people. At midnight in Japan, temples rang their bells 108 times—representing the 108 evils being struck out—as worshippers threw coins as offerings and prayed. In Tokyo, dozens of volunteers stirred huge pots of New Year's rice-cake soup, pitched tents and doled out blankets and clothing to the needy.

Community colleges, Pennington dodge ax

Officials with the Louisiana Community and Technical College System expressed relief that Gov. Bobby Jindal shielded them from spending cuts. Joe D. May, president of the LCTCS, says the system will continue to work with the Louisiana Workforce Commission and Louisiana Economic Development to implement changes in worker training. "Ultimately everyone will benefit as we grow and train students, put more people to work and help business and industry thrive as we boost the economy," May says. LCTCS officials note they have seen an enrollment increase, as laid-off workers learn new skills. Enrollment increased by 13.6% from fall 2007 to this fall, when 59,506 students took classes in the community college system.

Tuesday, Jindal announced plans to cut $341 million in spending in order to deal with a state budget shortfall, but says he will protect some areas, such as community colleges and Pennington Biomedical Research Center. He also wants to keep Medicaid rates unchanged for rural hospitals and the LSU charity hospital system. Because the cuts are being spread across multiple departments, higher education funding didn't get as big a hit as expected. Louisiana colleges will lose $55 million, but they had anticipated a $118 million cut. The LSU System will take the biggest hit, a $28.9 million reduction in funding, while the University of Louisiana System will lose $19.7 million, Southern University will lose almost $4.1 million and the Board of Regents will lose $2.4 million. In a statement, LSU Chancellor Michael Martin says even though university will have to make difficult choices, he's grateful the cuts were reduced. "More importantly the students and the citizens we serve will benefit as a result of this improved fiscal outlook," he says.

Local retailers say Christmas sales beat national average

Despite national Christmas sales being off a dismal 5% to 8%, Capital Region retailers say a sound local economy helped them match 2007 figures. “Every year it seems people are later in buying, but they always come through at the end,” says Becky Adams, assistant store manager at Dillard’s in the Mall of Louisiana. The store, which routinely ranks among the Little Rock, Ark.-based chain’s top five performers, had the highest number of sales on Black Friday among 300-plus locations. “Baton Rouge is in a better position than the rest of the country,” Adams says. While she anticipates promotions will draw strong sales for New Year’s Day, Adams is remaining cautiously optimistic about January sales figures.

Brad Roddy, manager of Lee Michaels Fine Jewelry in the Mall of Louisiana, also attributed healthy sales to the area’s stable economy. “We held our own compared to last year. I think Baton Rouge was fortunate in the sense that we haven’t been hurt that much,” he says. Statewide, retailers are similarly reporting healthy Christmas sales, says Dawn Johnson, executive director of the Louisiana Retailers Association. “The majority of Louisiana retailers are reporting positive news from the holiday shopping season,” she says. “The food retailers are all reporting great sales figures.”—Anna Thibodeaux

ESPN.com profiles highly regarded LSU football recruit

ESPN.com profiles Russell Shepard, one of the top high school quarterbacks in the country. Shepard, a native of Houston, will enroll at LSU next month, and he could be taking the field for the Tigers in the fall. "I have the opportunity to come in fresh, come in early and contribute," Shepard says. "Worst case scenario, I come in and do what (Florida's) Tim Tebow did his freshman year." Read the story here.

Publisher: Looking ahead to 2009

The new year might be a tough opponent, because of the weak national economy and sliding oil prices. But Business Report Publisher Rolfe McCollister says we need to look to 2009 with confidence and anticipation of the opportunities that lie ahead. "A new year and new challenges will require change and a new way of thinking," he says. Plus: Walter Monsour will be missed as the city-parish’s chief administrative officer, BESE could take over failing parish schools and there’s a way for the government to cash in on foreclosures. Read the column here. Send comments to editors@businessreport.com.

Job vacancies are a mixed bag

10/12 Weekly reports today that Louisiana had nearly 18,000 fewer open jobs in the second quarter of 2008 than it did during the same period last year. That’s a dip of one percentage point, giving Louisiana a new vacancy rate of 4.1% (four available jobs for every 100 in the state). The Workforce Commission's 2008 Job Vacancy Survey identifies the number and types of jobs available in specific industries and regions of the state. As for 10/12, decreases were seen up and down the interstate system, including the metro areas of Lafayette, Baton Rouge and New Orleans. To read the full story, click here. To see the rest of the newsletter, click here.—Jeremy Alford

Final day for Business Award nominations

Today is the final day to submit nominations for the 27th annual Business Awards and Hall of Fame banquet, which will be held on April 23. The event is presented annually by Business Report and Junior Achievement. The categories include Business Hall of Fame Laureate (for a lifetime of achievement), Company of the Year (under 100 employees), Company of the Year (100 or more employees), Young Business Person of the Year (40 or under) and Business Person of the Year. To nominate your company, a client, vendor or friend, go to batonrouge.ja.org or call 928-7008.

Financial roundup: Mortgage rates drop to another low … Oil prices continue decline on final day of volatile year … Drop in jobless claims much more than expected

Lowest level in 37 years: Interest rates on U.S. 30-year fixed-rate mortgages dropped for a ninth consecutive week, reaching their lowest level in 37 years, according to a survey released today by home funding company Freddie Mac. Interest rates on the 30-year fixed-rate mortgage dropped to an average of 5.10% for the week ending today, down from the previous week's 5.14%, Freddie Mac said. The 30-year fixed-rate mortgage has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

Below $40 a barrel: Oil traded below $40 per barrel on the last day of 2008, quietly wrapping up what has been the most turbulent year ever in crude markets. Light, sweet crude for February delivery on New Year's Eve rose 12 cents to $39.15 a barrel on the New York Mercantile Exchange. The contract overnight fell 99 cents to $39.03. Oil had been rising steadily since hitting a trough of $17.85 in 2002, jumping 57% in 2007 to $95.98 a barrel. That ascension only accelerated in 2008, fueled by speculation that soaring growth from China, India and other emerging economies would outpace demand for crude while a weaker dollar helped drive up prices to a record $147.27 a barrel on July 11.

Credit seasonal factors: The number of U.S. workers filing new claims for jobless benefits slumped 94,000 last week, government data today showed, but seasonal factors were likely behind this unexpectedly large decline with the labor market remaining very soft. Initial claims for state unemployment insurance benefits fell to a seasonally adjusted 492,000 in the week ended Dec. 27 from an unrevised 586,000 the prior week, the Labor Department said. It was the lowest reading for initial claims since the week ended Nov. 1, and the steepest decline since 1992. Analysts polled by Reuters had forecast 565,000 new claims as the country's year-long recession continued to chill employment, and a separate reading on so-called continued claims hit a 26-year high.

Poll: Gustav biggest story of 2008

An overwhelming number of Daily Report readers say the damage caused by Hurricane Gustav was the Capital Region’s biggest news story in 2008. Seventy-one percent of the people who responded to an online survey say the Labor Day weekend storm, which caused widespread damage and lengthy power outages, was the biggest news event of the year. Out of nine other choices, LSU's BCS football championship was the only other to get a double-digit share of the vote, with 16% saying the Tigers' second title in four years was the biggest news event of the year. Nearly 1,900 people participated in the survey.

Today's question: What are your plans for New Year's Eve?

News roundup: What to watch for in 2009 … Japanese sushi restaurant/steakhouse opens

Here's what's hot: South Africa, T. Boone Pickens and the decline of e-mail are some of the things to watch in 2009, according to JWT, one of the world's largest advertising agencies. The agency has released its annual list of 90 things to watch in the upcoming year. Other people places and things that will get a lot of attention in 2009: old-fashioned cooking, marketing with aromas and Amy Poehler.

More sushi: Sakura, a sushi and Japanese steakhouse, is now open in the former Louisiana Pizza Kitchen/Vincent's location off Essen Lane near Interstate 10. Guang Ming Lin, who owns China One restaurant on Government Street, also owns the new restaurant.

No Daily Report on Thursday

Daily Report will not be published Thursday because of the New Year's Day holiday. The newsletter will return Friday. Happy New Year.