  We present results based on an XMM-Newton observation of the high luminosity
narrow-line QSO PHL 1092 performed in 2003 January. The 0.3 - 10 keV spectrum
is well described by a model which includes a power-law (Gamma ~ 2.1) and two
blackbody components (kT ~ 130 eV and kT ~ 50 eV). The soft X-ray excess
emission is featureless and contributes ~ 80% to the total X-ray emission in
the 0.3 - 10 keV band. The most remarkable feature of the present observation
is the detection of X-ray variability at very short time scale: the X-ray
emission varied by 35% in about 5000 s. We find that this variability can be
explained by assuming that only the overall normalization varied during the
observation. There was no evidence for any short term spectral variability and
the spectral shape was similar even during the ASCA observation carried out in
1997. Considering the high intrinsic luminosity (~ 2x10^45 erg/s) and the large
inferred mass of the putative black hole (~ 1.6x10^8 M_sun), the observed time
scale of variability indicates emission at close to Eddington luminosity
arising from very close to the black hole. We suggest that PHL 1092 in
particular (and narrow line Seyfert galaxies in general) is a fast rotating
black hole emitting close to its Eddington luminosity and the X-ray emission
corresponds to the high-soft state seen in Galactic black hole sources.
