Business briefs | Economy gains as businesses spend more

Economy gains as businesses spend more

WASHINGTON Businesses are growing more confident in the economy, investing in more equipment and laying off fewer workers.

Government figures on manufacturing and unemployment claims released Thursday raised hopes on the eve of a report on how much the economy grew in the October-December quarter.

Still, 2011 ended up as the worst year on record for new-home sales, a reminder that the economy has a long way to go.

“Business optimism seems to be picking up, which is critical to the growth and competitiveness of the U.S. economy over the long haul,” said Diane Swonk, chief economist at Mesirow Financial.

Judge: BP contract shielded Transocean

NEW ORLEANS A federal judge has ruled that the rig owner involved in drilling the ill-fated well that blew out in the Gulf of Mexico was shielded by its contract with BP from having to pay many pollution claims in the nation's largest offshore oil spill.

U.S. District Judge Carl Barbier ruled Thursday, however, that Transocean Ltd. is not exempt from paying punitive damages and civil penalties that arise from the April 20, 2010, blowout 100 miles off the Louisiana coast.

He also says Transocean is responsible for claims that are directly related to pollution caused by its rig.

Debt-relief talks restart in Greece

ATHENS, Greece Greece's prime minister resumed talks late Thursday with top bank negotiators to try and overcome obstacles to a major debt-relief deal needed to avoid bankruptcy.

Premier Lucas Papademos held a two-hour meeting with Charles Dallara, managing director of the Institute of International Finance, a banking lobby, and Jean Lemierre, senior adviser to the chairman of French bank BNP Paribas.

Caterpillar profits up

NEW YORK Caterpillar Inc. said Thursday that its fourth-quarter profit jumped 60 percent, boosted by pent-up demand for new equipment and continuing growth in developing countries.

The performance of the world's largest maker of construction and mining equipment is an indicator of the strength of the global economy. Along with strong fourth-quarter earnings, Caterpillar issued rosy guidance, saying that it expects the global economy to grow faster this year and construction activity to continue to improve in most parts of the world.

Caterpillar, based in Peoria, Ill., reported net income of $1.55 billion, or $2.32 per share, up from $968 million, or $1.47 per share, in the same quarter last year.

From wire reports