Market Comments 7/18/2008News: U.S. activity weak except for high-end diamonds and jewelry. Foreign cutting centers seasonally slow with demand for select D-F goods. Indian rough trade improves as cutter strike ends. DTC rough price increase has not pushed up polished prices. U.S. June wholesale inflation +9% to break 27 year record. Department store sales -1% to $17 bil. U.S. May polished imports at record o $2.3 bil. (+23%) and polished exports $1.3 bil. (+53%). India June polished exports $1.2 bil. (+28%), polished imports $649 mil. (+82%) rough imports to $1.3 bil. (+32%), rough exports $96 mil. (+105%). Russia 1Q rough exports $415 mil. Tiffany loses trademark suit against eBay. Wal-Mart sourcing responsible gold and silver from Rio Tinto, Newmont and others. Rio Tinto 1H08 diamond production 9.6 mil. cts (-30%). Trans Hex tender nets $17 mil. for 11,823 cts. with a 27ct stone selling for $50,000p/ct. Richemont SA 1Q sales +13% to $2.3 bil. led by growth in Europe (+16%) and Asia Pacific (+21%).