Diamond mining companies will likely cut jobs after the coronavirus hit jewellery demand.
Diamond sales have plunged in the U.S., the most important diamond market in the world, and trading hub India has also been hit hard.
Citi analyst Paul Lejuez says that while Signet Jewelers is doing a good job of controlling the parts of the business it can control, the store base continues to shrink and traffic to remaining stores. Further, changes to sub-prime lending practices has the potential to negatively impact sales, Lejuez tells investors in a research note. The analyst believes Signet Jewelers’ earnings power is a “fraction of what it once was.”
Mark Cutifani, chief executive officer at Anglo American Plc, discusses the collapse in the diamond market, the global economic recovery and his outlook for metals. He speaks on “Bloomberg Markets: European Open.”