Financial Update

Toronto Stocks plunge sharply in panic selloff

· TSX -813.97pts to 10,900 down nearly 7% to its lowest level in more than 2 years, battered by concerns over the outlook for fertilizer producers and a drop in oil and gold prices.

The plunge in shares of big fertilizer producers came amid worries that the U.S. credit crisis could hamper farmers' ability to get cash for next year's planting season. It marked the latest in a series of shock waves emanating from Wall Street's turmoil and the related slowdown in the global economy

· Dow -348.22pts.
· Dollar -1.56c to $92.60US.
· Oil -4.56 to $93.97US per barrel
· Gold -41.70 to $839US per ounce

Bailout hopes rise as more 'no' votes switch

By Julie Hirschfeld Davis, The Associated Press WASHINGTON - A wave of converts from the U.S. House of Representatives jumped aboard the $700 billion financial industry bailout Thursday on the eve of a make-or-break second vote, as lawmakers responded to an awakening among voters to the pain ahead of them if stability is not restored to the tottering economy.

Republicans and Democrats alike said appeals from credit-starved small businessmen and the Senate's addition of $110 billion in tax breaks had persuaded them to drop their opposition.

Wells Fargo to buy Wachovia

Jaime Sturgeon, Financial Post Wells Fargo & Co. said Friday that it would purchase Wachovia Corp. in an all stock transaction for US$15.1-billion and issue up to US$20-billion in stock to pay for the transaction. The combined company will have 10,761 retail locations, US$258-billion in mutual fund assets and US$1.42-trillion in net assets.

The deal, which is free and clear of federal oversight, is for Wachovia's entire business. It breaks up a Washington-brokered offer from Citigroup to acquire the regional bank's retail operations for US$2.2-bilion on Monday.