Add David Tepper to the list of hedge funders getting fried thanks to owning a piece of Fannie Mae and Freddie Mac. Appearing on Bloomberg, Tepper says he wished he didn't own any stock in the two, but also says it's a small position.
Contrarian antennae may be perking up as Goldman - following brutal multi-month runs lower in all of the grains - cuts its price forecast for soybeans, corn, and wheat.
First up is beans (SOYB -0.2%), which Goldman says are overpriced relative to corn. Given the forecast for ending stocks, a 2.6:1 ratio for beans to corn, or $8 per bushel, is appropriate. Goldman's previous forecast called for beans at $10.50.
Corn (CORN -0.1%) is cut to $3 per bushel from $4 amid strong U.S. crop yields and a lower export forecast. Wheat (WEAT -0.9%), says Goldman, deserves a 50% premium to corn given the current inventory situation, and this works out to $4.50 per bushel (from $5.60 previous).
Brazil's manufacturing PMI slipped to 49.3 in September from August 50.2. New orders fell for the fifth time in six months, with the rate of contraction the fastest since May, and input and output prices fell simultaneously for the first time since August 2009.
It's the fifth time the PMI has slipped into contraction territory in 2014.
The 53.5 read in the September RBC Canadian Manufacturing PMI compares to August's 54.8, and is the lowest print since June. The Q3 average for the index was 54.2.
RBC's Craig Wright: "As we progress into the final months of 2014, we expect a further strengthening in the U.S economy will augment Canadian exports and set the stage for solid manufacturing business conditions overall."
In response to the ever-increasing risk of security breaches, the FDA issues final guidance for device makers entitled, "Content of Premarket Submissions for Management of Cybersecurity in Medical Devices." The agency recommends that device manufacturers consider cybersecurity risks at part of the design and development of their products and submit documentation to the FDA about the risks identified and the controls in place to mitigate them. The agency also recommends that companies submit their plans for patches and upgrades to device operating systems and medical software.
The agency will hold a public workshop on October 21, 2014 to discuss how all the constituency groups can work together to improve cybersecurity in medical devices and protect the public health.