Market Comments 8/1/2008News: NY JA Show very weak with some demand for larger fine quality 4ct+ sizes. U.S. recession frightening retailers who are seeking heavy discounts and avoiding inventory purchases. De Beers opens Forevermark grading labs in Belgium and UK. Delaware Fed. Bankruptcy Court upholds rights of memo holders in Whitehall Jewelers case. Bank of America downgrades Tiffany to "sell" in anticipation of drop in tourism to NY store. LVHM 1H jewelry sales $650 mil. (+7%), profits $115 mil. (+30%.) Japan June polished imports -6% to $68 mil. KPCS global production -0.6% to $12.1 bil. in 2007, volume -4% to 168.2 mil. carats. Petra Diamonds FY08 sales at $76.6 mil (+356%) and production at 200,287 cts (+11%). Diavik 2Q08 production at 2.5 mil. cts. (-23%)