CAD to Limit Foreign Currency Borrowings

Arindam Som, Analyst & Soumyajit Niyogi, Associate Director-India Ratings and Research (Fitch Group), Widening current account deficit (CAD) to Raise Borrowing Costs & Limit Foreign Currency Borrowings! The combined effect of a CAD and subsequent rupee depreciation is likely to increase the borrowing costs of Indian corporates.

A weakening rupee, coupled with rising interest rates, and forward premium could impinge on the Indian corporates’ ability to tap foreign markets to raise debt capital. For instance, the annualised forward premium on the USDINR 3-month future contract increased to 4.36% on 21 August 2018 (31 March 2018: 3.46%) – reflecting a commensurate rise in hedging costs.

China to overtake US as leading blockchain developer

The new research from PwC-Blockchain is here. What’s your next move? PwC surveyed 600 executives in 15 countries and territories, on their development of blockchain and views on its potential. Its highlight says,1: China to overtake US as leading blockchain developer within three to five years & 2: Trust, regulatory uncertainty identified as biggest barriers to business adoption!

Key takeaway is, 84% of executives surveyed by PwC report blockchain initiatives underway while 15% are fully live! As blockchain rewires business and commerce, the research provides one of the clearest signals yet of organisations’ fear of being left behind as blockchain developments accelerate globally opening up opportunities including reduced cost, greater speed and more transparency and traceability. 

The Diamond Report focuses terminology

With fewer than seven weeks to go to the opening of the 2018 CIBJO Congress in Bogotá, Colombia, on October 15, 2018, the third of the CIBJO commissions' Special Reports has been released. Prepared by the CIBJO Diamond Commission, headed by Udi Sheintal, the report concentrates largely on the way in which man-made stones are being distinguished from diamonds that are natural in origin, particularly in light of the newly released guides by the U.S. Federal Trade Commission.

"While the new FTC guides clearly recognize the synthetic diamond producers as fully-fledged participants in our industry, the bottom line when it comes to the unqualified use of the word 'diamond' has not changed," writes Mr. Sheintal. "It can only refer to a mined stone."

The tit-for-tat USA China tariffs will hit jewelry

Chen Shen-ICA Director from China said tariffs and monetary restrictions in Hong Kong and China that could impact the gemstone trade. One of the most important trade shows, the September Hong Kong fair is coming. There are many things happening in China and Hong Kong, and they could impact the colored stone business.

The tit-for-tat tariffs between the USA and China will hit the jewelry business if a trade agreement is not reached soon. Jewelry and jewelry-related products are on the next-round tariff list for the two countries. This will have a greater impact on Chinese jewelry export manufacturers. Things are changing in Hong Kong as well.

Tiffany Worldwide Sales Rise 12% in Q2

Tiffany & Co reported its financial results for the three months, Q2 and six months ended. Higher earnings in both periods resulted from broad-based growth in worldwide sales, increases in gross margin and lower effective tax rates, partly offset by higher investment spending.

These better-than-expected results led management to increase its net earnings outlook for the full year ending January 31, 2019 i.e fiscal 2018.

In the Q2 worldwide net sales rose 12% to $1.1 billion, reflecting geographically broad-based growth and increases in all product categories; comparable sales rose 8%. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 11% and comparable sales rose 7%.

IGI conducts diamond training for the sales team

Leading Jewellery retailers of Gorakhpur known for pioneering trends in their market host diamond training for the sales team. The training was conducted by Mr Nishchay Kapoor on behalf of IGI who led the entire program. The workshop was a 5 days affair and was held at the Ghantaghar outlet in Gorakhpur.

The training program covered various topics related to diamond grading, both theoretical and practical. Transparency has been one of the pillars of the brand and only if the customer is well informed he can make a decision about the product he is purchasing. Sales team being the front Enders of this process, training them would lead to empowering them with knowledge and therefore also educating the customer in the process.

TAGS rough diamond tender

Tender from 25th September to the 2nd October

Trans Atlantic Gem Sales (TAGS) will be holding a rough diamond tender from the 25th September to the 2nd October 2018 in the prestigious Almas Tower, Dubai. Two regular productions of high quality and high colour material from South Africa and Angola will again be presented.

WFDB Debates Way Forward for Industry

Asian Summit/Executive Committee (EC) meeting concludes

The current role of the World Federation of Diamond Bourses (WFDB) and how it can move forward was among the discussions at its Asian Summit/Executive Committee meeting held in Vladivostok. The well-attended meeting saw around 40 representatives from across the world taking part, said WFDB President Ernie Blom.

Asian Summit or Executive Committee (EC) meeting concludes in Vladivostok, Russia & that ran through August 26-27 was hosted by the Moscow Diamond Bourse (MDB). "The strong attendance enabled us to receive extremely worthy input at our discussions," said Blom. "We are very keen to see how we can forward the role of the WFDB on the global stage. The Federation is by far the largest diamond industry body and the diamond trade's go-to group.

Gold rebound due to tech and fundamental

World Gold Council says in its’ Investment Update for the August 2018 that, Gold has fallen to a 20-month low amid sharp EM currency depreciation. At these levels, “we believe the gold price may bounce back. Consumer demand is likely to be supportive in H2. And short positioning may quickly reverse should one of the many current macroeconomic risks materialise, increasing investment demand.”

The gold price lost 3% during the first half of August, a downturn that was exacerbated by gold's fall below US$1,200/oz – an important technical support level – for the first time since early 2017. Gold was propelled down by the strength of the US dollar against both developed and emerging market currencies, particularly, a weakening of the Chinese Yuan first and Turkish lira later.

Mineral Digital Fingerprint project

The Colombian Ministry of Mines and Energy, in association with the Colombian Geological Service and the National University, has budgeted US$30 million for a five-year “Mineral Digital Fingerprint” project that started in 2018. This project is based on a technique developed in Australia and applied in South Africa as a control mechanism for the commercialization of gold and precious stones.

The goal of the Fingerprint (La Huella) project is to provide an understanding of the particular conditions and physical-chemical characteristics that were present at the time of the geological formation of a mineral, which then gives a specific geo-chemical DNA. This Fingerprint can also be traced at the different stages of exploitation, refinement and commercialization of the minerals.