Melee weakand prices softening as rupee depreciation (-8% in three months to INR 73.53/$1on Oct. 18) impacts Indian demand. Threat of undisclosed synthetics alsoinfluencing jewelers to avoid melee inventory. US orders and memo for 0.70 to1.99 ct. diamonds supporting the market. Sears files for bankruptcy,highlighting need for retailers to innovate, improve in-store and onlinecustomer engagement, and refresh product offering for holiday season. MichaelHill 1Q sales -9% to $80M. Rough trading cautious, with De Beers pricesestimated -1% at $475M Oct. sight. Rio Tinto 3Q production -17% to 4.9M cts. USgovernment guarantees Stanbic Bank $125M loan for Botswana manufacturing. Fancies: Far East demand improving as Chineseconsumers seek fancy shapes at better prices. US and European demand mixed.Ovals and Cushions are best sellers, followed by Emeralds and Pears. Radiantsimproving. Marquises and Princesses weak. Oversizes selling well. Steady demandfor fine-quality 6 to 10 ct. Ovals, Pears and Emeralds, with prices firming for3 to 5 ct. due to shortages. US supporting market for commercial-quality, medium-pricedfancies under 1 ct. Off-make, poorly cut fancies illiquid and hard to sell,even at very deep discounts. UnitedStates: Stable marketas jewelers prepare for the holiday season. Prices for dossier goods firm, withdealers protecting profit margins after quiet third-quarter trading. Steadydemand for 1 ct., G-J, SI-I1, GIA-graded diamonds. Smaller goods in uncertifiedparcels weak. A lot of items going out on memo. Belgium:Polished market soft, but dealers optimistic for Novemberand December. Consistent orders for 0.30 to 1.50 ct., G-H, VS-SI goods. Smallstones slow. Improvement in high-end diamonds above 10 ct. Rough activitycautious, with De Beers boxes trading at lower premiums. Israel:Sentiment weak due to lowprofitability and rising inventory levels. US orders stable, with high volumeof commercial-quality goods on memo. Little excitement about IsraelDiamond Week in New York (Oct. 15 to 17). Stable demand for 0.30 to 1 ct., F-J,VS-SI, RapSpec A3+ diamonds. India:Drop in sentiment amid rupee depreciation and Suratbankruptcy rumors. Small-scale manufacturers under pressure as domestic demandfor under-0.25 ct. goods declines. Steady US interest in SI-I1 diamonds. Fewer foreigndealers in the market than during last week's Bharat Diamond Bourse buyingevent. Jewelers cautious ahead of Diwali festival as weak rupee inflates goldprices. HongKong: Polished sectorquiet and jewelry sales sluggish during shorter week that included the ChungYeung Festival. Sentiment mixed, with some concerned about how US-China tradewar and yuan depreciation could impact consumer demand and tourist spending.Encouraging initial reports about Oct. 1 Golden Week sales and ongoing weddingseason. Tourist arrivals stable during busy holiday period.