IBT Staff Reporter

Goldman Sachs Group Inc said on Thursday that quarterly profit surged 79 percent, blowing away expectations of weak results, as the investment bank generated its second-highest revenue ever despite turbulent summer markets.

While California suffers in the housing crisis, the economy of nearby Washington state is flourishing with strong job growth and some of the highest appreciation in home prices in the nation.

Oil hovered around $82 a barrel on Thursday as sinking U.S. crude inventories and the threat of a storm gathering near Florida increased worries of a winter supply crunch in the world's top consumer.

Stocks were little changed on Thursday as a weak outlook from economic bellwether FedEx and sharply lower profit from investment bank Bear Stearns helped stall a rally that followed this week's aggressive interest rate cut.

The dollar broke above $1.40 per euro for the first time on Thursday, weakened by a hefty U.S. interest rate cut this week and expectations of further cuts in benchmark rates.

Spot gold prices surged to a 28-year high in European trade on Thursday, as the dollar sank to record lows against the euro and oil traded near all-time highs -- raising the precious metal's appeal for investors.

Whoever becomes prime minister of Japan next week after Shinzo Abe's shock resignation will inherit an unpopular administration and face pressure to boost rural spending to revive support, despite high government debt.

Improving access to medicine could save 10 million lives a year globally, a U.N. health envoy said on Thursday, recommending that drugmakers support research for neglected diseases and cut prices in poor countries.

A unit of POSCO, the world's fourth-largest steel maker, said on Thursday that it had won a $350 million order to build India's biggest blast furnace from state-run Steel Authority of India Ltd.

Taiwan's Arima Computer said on Thursday it has signed a letter of intent with Flextronics to sell its notebook PC and server operations to Flextronics for US$191.5 million.

India's No. 2 private power producer, Reliance Energy Ltd, is scouting for coal mines overseas and sees infrastructure projects such as road and rail as key growth drivers, a senior official said on Thursday.

Apple Inc Chief Executive Steve Jobs was asked by U.S. securities regulators to give a deposition in a lawsuit against the company's former general counsel involving stock options backdating, Bloomberg reported, citing two people familiar with the matter.

Sony Corp said on Thursday it would postpone the launch of the Home virtual community service for its PlayStation 3 game console to early next year, the latest setback in its videogame battle with Microsoft Corp and Nintendo Co Ltd.

Bear Stearns Cos Inc said on Thursday quarterly profit plunged 61 percent to its lowest level in five years on bad bets on subprime mortgages and disrupted fixed-income trading.

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Goldman Sachs Group Inc said on Thursday that quarterly profit surged 79 percent, blowing away expectations of weak results, as the investment bank generated its second-highest revenue ever despite turbulent summer markets.

Federal Reserve Chairman Ben Bernanke warned Congress on Thursday that raising the ceiling on the size of loans that mortgage finance enterprises Fannie Mae and Freddie Mac can buy could undermine market discipline.

Benchmark stock indexes looked likely to open lower on Thursday, index futures showed, and analysts said earnings from two top banks and remarks by Fed Chairman Ben Bernanke would be in focus.

U.S. Treasury Secretary Henry Paulson will meet with Canadian Finance Minister Jim Flaherty near Ottawa on Friday, when they will announce changes to the Canada-U.S. Tax Treaty, Ottawa said on Wednesday.

The U.S. House of Representatives approved a bill on Wednesday that aims to strengthen government oversight of dangerous side effects from prescription drugs.

Europe's biggest bank HSBC Holdings has rejected calls from activist investor Knight Vinke Asset Management for it to review its strategy and shake up its corporate governance, the Financial Times reported.

Bahrain has received bids from U.S. firm Occidental and Russian state-owned Zarubezhneft to explore for oil in the kingdom's waters, the Gulf Daily News reported on Thursday.

Japanese electronics maker Sharp will buy about $357 million worth of new shares from Pioneer Corp and work with its loss-making rival in developing DVD players, car electronics and displays.

The dollar sank to a 15-year low against major currencies on Thursday while the euro rose above $1.40 for the first time as the impact of the U.S. Federal Reserve's interest rate cut continued to sweep across markets.

Shares in Northern Rock took a fresh hit on Thursday, tumbling over 20 percent on renewed concerns over its future, and as the government said its guarantees would not cover new accounts.

Nokia, the world's top cellphone maker, unveiled on Thursday its new phone model 6301, which features unlicensed mobile access (UMA) technology.

Sony Corp's game unit said it was fairly confident of doubling shipments of PlayStation 3 game consoles to 11 million in the year to March, and may buy more software firms to boost demand for its console.

Nasdaq and Borse Dubai joined forces on Thursday with a deal to buy Nordic markets operator OMX and create a global financial marketplace which will see Borse Dubai taking key stakes in London Stock Exchange and Nasdaq.

The Federal Reserve came to the aid of U.S. banks on Tuesday when it cut rates in a move that should improve their lending margins and give them breathing space to deal with the fallout from the subprime mortgage crisis.