China and Mexico talk trade deal; Laptop ban lifted for Emirates; Volvo’s gas-only cars are history after 2019

Profitable Moment   Is trade a zero-sum game?  Trade will be a major issue at this weekend's G20 summit in Germany.   Donald Trump believes trade is a zero sum game. Angela Merkel believes that trade deals are a win-win for all. It's easy to see why Merkel favors the globalization approach – Germany runs a thumping big trade surplus with much of the world. Seen from Berlin, trade has indeed been a big winner. On its face Trump's position is also understandable. The U.S. has huge deficits with many countries including China, Germany and Japan! In Trump's view, these deficits only exist because the deals behind them are unfair. Both leaders are right.  Of course it's much more nuanced: In the U.S., automakers like BMW support up to a million jobs, and the cars are exported around the world. Ford and GM also make cars in Mexico, which creates wealth in that country, where consumers can then buy U.S. goods. When it comes to trade, the grass is always greener…. In the end I tend to the view of the zero-sum argument. The aim may be lofty, but someone always loses out.   -Richard.Quest@cnn.com  What's new... what's next   By Matt Egan and Patrick Gillespie of CNNMoney 1. Maybe Trump's tough trade talk is working A new study found that America's top trade partners have been less aggressive so far this year than in prior years. Trump has lambasted several countries -- from Germany to China to Mexico -- for what he calls unfair trade practices. He already slapped a 20% tariff on Canadian lumber. The study concludes that G20 nations are cutting back on trade tariffs and quotas against the U.S. "Why should [they] do that unless they feared being singled out for retaliation?" one of study's authors posed. For now, Trump's tough talk may be having the impact he sought.  2. But China and Mexico eye a trade deal They may be holding back on slapping tariffs on the U.S., but China and Mexico -- two of Trump's favorite punching bags on trade -- are talking up a potential trade deal. China's ambassador to Mexico recently said China wants to do a free trade agreement with Mexico, and Mexico's economic secretary is headed to China in September. It's unclear how much genuine interest there is in a trade deal or whether this is just posturing: The secretary's visit to China coincides with the beginning of NAFTA negotiations. He says the China visit signals that Mexico has "a lot of alternatives."  3. Volvo's gas-only cars are history after 2019 Is this a watershed moment for the century-old internal combustion engine? Volvo raised eyebrows by saying every car it makes from 2019 onward will have an electric motor. That makes Volvo the first traditional automaker to fully embrace electric and hybrid production. While electric cars are clearly gaining momentum, the gas-powered engine isn't going away completely. Electric cars still lose money because battery costs remain high. Even Volvo plans to sell mostly hybrids after 2019, not pure electric cars.  4. Laptop ban lifted for Emirates, Turkish Airlines Good news, laptop lovers! Passengers flying to the U.S. from Dubai and Istanbul no longer need to separate themselves from their laptops and tablets. Emirates and Turkish Airlines have confirmed that the U.S. ban on electric devices larger than a smartphone in cabins was lifted for their airlines after four months. U.S. officials worried the devices could be used to smuggle explosives, but Emirates said it worked hard to implement "heightened security measures." 5. Quick Takes: India's top tech firms are losing their appeal with Indian engineering grads China's dockless bike sharing could be coming to a street near you  Volkswagen will sell cars in Iran for the first time in 17 years  The tequila that costs $30,000 a bottle  6. What's next: Speaking of U.S. trade… Given all the trade talk at the G20 summit, it's fitting that new numbers on the U.S. trade deficit are due out on Thursday morning at 8:30 a.m. ET. Despite Trump's efforts to close the trade gap, economists expect the trade deficit grew in May. Sneak peek at the jobs report: How many jobs were created in June? That question will be answered by Friday's government jobs report. Ahead of that closely watched indicator, ADP is scheduled to release its estimate on private-sector payroll growth at 8:15 a.m. ET on Thursday.  More turbulence for oil? After rallying for eight straight days (the longest win streak since 2010), crude took a plunge on Wednesday amid more concerns about oversupply. The oil glut will again be in focus on Thursday when weekly inventory numbers are released at 11 a.m. ET. Analysts expect the report, which was delayed by a day due to the holiday, will show a plunge in crude stockpiles.   Make this newsletter better. Please send us your feedback to CNNMoneyfeedback@turner.com Share Tweet Forward Sign up for CNN Money's morning markets newsletter: Before the Bell Sign up for CNN Money's closing markets newsletter: Markets Now Copyright © 2017 Cable News Network, LP, LLLP. A Time Warner Company. All Rights Reserved., All rights reserved. You're receiving this newsletter because you opted in at cnn.com or cnnmoney.com. Our mailing address is: Cable News Network, LP, LLLP. A Time Warner Company. All Rights Reserved. One CNN Center Atlanta, GA 30303 Add us to your address book unsubscribe from this list    update subscription preferences