Canadian trade union Unifor said roughly 4,500 of its members have been temporarily laid off because of the GM strike so far.Autosread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Roku shares have more than quadrupled this year, but the stock has had some rocky days of late as more players jump into streaming.Technologyread more
Legal experts say that California, which has pledged to sue, has a strong case that the administration's move is unlawful.Politicsread more
A group of 23 states on Friday sued to undo the Trump administration's determination that federal law bars California from setting stiff tailpipe emission standards and...Transportationread more
U.S. officials, including Secretary of State Mike Pompeo, have accused Iran of orchestrating devastating strikes on Saudi oil installations over the weekend.Politicsread more
Rosengren was one of two central bank officials to vote against Wednesday's quarter-point rate reduction, and explained in a speech to the Stern School of Business at New York...Economyread more
Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Apple's iPhone 11 ships with a slow charger in the box, but it supports fast charging. So buy this cable and charger to get a 50 percent charge in 30 minutes.Technologyread more
The process will involve three 14-day operations involving $30 billion as well as continued overnight operations of at least $75 billion each.The Fedread more
Some businesses, mostly small to midsize companies, are providing workers with paid time off to join the global climate strike, while others are shutting down operations...Weather & Natural Disastersread more
The world of diamonds might become more interesting beyond the scope of engagements and weddings.
Diamond prices have tumbled almost 15 percent over the past 12 months and that has Nicholas Colas, chief market strategist at Convergex, eyeing a larger trend. (Tweet this)
"The reason all this intrigues me is not as a prospective shopper, but rather because the price of 'Commodity' diamonds is a very good case study in macroeconomic deflationary pressures," Colas said in a report for clients.
The decline in diamond prices can be attributed to several factors, he said, including reduced consumer demand from China, India and Japan. But companies that turn raw stones into polished gems are also facing financial pressure as banks are less willing to lend. Slower demand, tighter capital requirements and too little inflation "is causing a slow-motion inventory shrink and pushing prices lower," Colas said.
How does Colas get from falling diamond prices to a case study in global deflation?
Colas said demand from China has fallen in 2015 with reduced buying-for-inventory among mainland jewelers. Part of that could be tied to the government's anti-corruption campaign. There are still no numbers to show just how much that market has fallen this year.
The companies that turn raw stones into polished gems have also taken a hit and are working on thin margins, according to Bain Consulting. So they have to manage their inventory carefully and watch capital expenditures, Colas said. He questioned whether that could be linked to decreasing Chinese demand.
Last September the Antwerp Diamond Bank closed its doors to new business, shutting one of the major sources of capital in the diamond industry. In addition, reports have been circulating about how De Beers, the largest supplier by value of stones, is asking clients to meet tighter credit standards.
All of this is contributing to downward deflationary pressure on diamonds that Colas said is hauntingly similar to other industrial commodities, like crude oil.
"A diamond might be forever, but let's hope the recent price action doesn't augur anything too permanent about global deflation," he said.