Market Comments 11/14/2008
Rapaport Weekly Market Comments: Diamond markets under continued pressure as global economic crisis reduces luxury demand and volatile stock, commodity and currency markets rattle consumer confidence. Trading volume falls as buyers face increasing liquidity difficulties and sellers sharply reduce long term credit sales amid fears that they will not get paid. S&P predicts U.S. Christmas retail sales will be flat to -2%, with recession bottoming in 2Q09. U.S. Sept. polished imports up 25% to $1.7 bil. and polished exports down 22% to $1.3 bil. Belgium Oct. polished exports down 4% to $905 mil. and rough imports drop 32% to $670 mil. India Oct. polished exports down 20% to $1.24 bil. and rough imports drop 37% to $470 mil. U.S. Oct. retail sales plummet: Neiman Marcus down 13% to $986 mil; Nordstrom down 8% to $1.8 bil. Saks 3Q sales down 12.3% to $693 mil. Signet 3Q sales down 7% to $629 mil. Macy's 3Q sales down 7% to $5.5 bil. Charles & Colvard 3Q sales down 37% to $4 mil. with loss of $3 mil. Finlay sales up 13% to $160.2 mil. but same-store down 14%. Sotheby�s 3Q revenues down 11% to $76 mil. and loss doubles to $46 mil.