Talk of ECB Bond Buying Plan Boosts European Shares: Hot Trends
NEW YORK (TheStreet) -- Popular searches on the Internet today include the ECB as a report indicated the European Central Bank could embark on a bond plan that may help the euro zone.
European shares rose on the report that said the ECB could buy bonds of euro zone countries if borrowing costs rose above certain limits. Germany's der Spiegel magazine reported that the ECB's new bond buying plan could see the bank setting upper limits on bond spreads, and that the ECB would start buying above those limits. The magazine also said that the ECB's new plan would be revealed in the beginning of September.
The euro faltered slightly after a spokesman for the bank said he was unaware of any bond buying plan. The German central bank also reaffirmed its opposition to bond buying, adding to the euro's stumble.
European and global markets have been boosted recently by hopes that a bond buying plan from the ECB would help solve the debt crisis in the area.
Aetna (AET) is trending as the health care provider is set to buy Coventry Health Care for $5.7 billion in cash and stock, or $7.3 billion including debt. The deal will make Aetna one of the largest providers of government-financed health care in the country. It's expected to increase Aetna's share of revenue from government business to over 30% from 23% on an adjusted basis. According to Aetna, the deal will give the company an additional nearly 4 million medical members and 1.5 million Medicare Part D members. Aetna will pay $42.08 per share for Coventry, a 20% premium to Coventry's shares at Friday's close. Coventry shares climbed over Aetna's offer on the news to $42.15 in premarket trading. Aetna plans to finance the cash part of the deal by issuing $2.5 billion of new debt and commercial paper, in addition to using existing cash. Aetna said the acquisition will be "modestly accretive" to its per-share operating earnings in 2013. It expects it to add 45 cents in 2014 and 90 cents in 2015.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
