By James Langton

(September 13 – 09:00 ET) – The big news of the day is that yesterday’s hot rumour came through. Chase Manhattan Corp. is buying J.P. Morgan & Co. for about US$36 billion in stock. The deal brings together two of the oldest U.S. banks. The deal, which will maintain the venerable J.P. name, should torpedo further speculation of a takeover of Merrill Lynch by Chase.

Attention is now turning to Lehman Brothers as the next to fall. Bear Stearns has also been tipped as a target, although it is less coveted.

There are no major economic releases in Canada today. In the United States, import prices for August came in up 0.2%. Export prices were down 0.3% . Economists were expecting a slightly larger oil-boosted bounce, but nonetheless the number will have little impact on trading.

A couple of central bankers are talking today. U.S. Federal Reserve Board Chairman Alan Greenspan is speaking in honour of economist Herbert Stein. Bank of Canada deputy-governor Malcolm Knight, tipped as the Bank’s next governor, is speaking in Calgary today on price stability and Canada’s economic performance.

In Europe so far stocks are sliding with auto stocks, oils and networker Alcatel leading the way down. The FTSE is off 54 points to 6,500. The CAC 40 is down 82 points to 6,615. The DAX is off 72 points to 7,063.

The euro finally climbed against the dollar after a German magazine suggested the European Central Bank may begin supporting the currency.

In other M&A news, Inktomi Corp. is buying closely held FastForward Networks for US$1.32 billion in stock.

Here at home, 724 Solutions is buying Chicago-based Spyonit.com, a private firm, for US$53.4 million, US$2 million cash and 1,041,616 common shares of 724. Spyonit.com monitors the Internet and other content sources, and deliver notifications to mobile devices when relevant information is uncovered.

In other news, crude oil prices are slipping a little on news that U.S. inventories of home-heating fuel rose for a fifth week.

Overnight in Asia, Hong Kong’s markets were closed for a holiday. Stocks rallied in Japan, led by NTT DoCoMo Inc, mining, and rubber. The Nikkei finished up 150 points to 16,190.

In other business news, Transat A.T. Inc. reports net income in the quarter ended July 31 came in at 31¢ a share, up from 26¢ last year.

Nortel Networks Corp. has struck a US$155 million supply deal with Savvis Communications Corp.

Westminster Resources Ltd. has agreed to sell its Canadian oil and gas assets to AEC Oil & Gas for $62.7 million in cash. Closing of the sale is scheduled for October 19. After repayment of debt, Westminster will have approximately $22 million from the sale proceeds to expand with elsewhere.

TECSYS Inc. and Viewlocity announced a strategic partnership agreement to help companies compete more efficiently with joint sales and marketing programs.