Readings: Export slowdown, Pakistan markets, Diamond prices
- Business Standard: Exports shrink in October: DGFT
Non-oil exports dipped 20 per cent in October against a small 3 per cent rise in September, he added. Gujral attributed the decline to waning demand from the United States and the European Union. In dollar terms, the two markets account for over 35 per cent of India’s total exports. The non-oil exports account for over 80 per cent of India’s export basket and industries like gems and jewellery and handicrafts have been the hardest hit.
Pakistan’s inflation accelerated to near a three-decade high in October, placing further strains on a nation that the International Monetary Fund says needs $10 billion to avoid defaulting on its debt.
The nation’s foreign reserves have also shrunk to $3.71 billion on Oct. 25 from $14.2 billion a year ago, raising concern that Pakistan will not be able to pay its $3 billion debt servicing costs due in the coming year.
Conditions attached to an IMF loan would include an increase in the central bank’s benchmark interest rate to 15 percent from 13 percent, as well as a 31 percent rise in tariffs on electricity and other utilities.
Scary.
- Haaretz: Diamond prices fall by 5%
Diamond traders and the rest of the industry woke up Friday morning to a major shock. At 6:00 A.M. the semi-official price list for the diamond industry, the Rapaport Diamond Report, was updated and all prices were lowered by about 5%. The diamond industry, known for its secrecy and behind-closed-doors transactions, suddenly found itself in the spotlight.
While Rapaport may have tried to calm fears, the sudden 5% loss on paper in the value of everyone’s merchandise did not sit well with the traders. This is a problem in particularly for those diamond traders who have used their gems as security for loans.
Wow. Even a near-monopoly couldn’t manage to hold prices up.
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