Good morning, Quartz readers!
What to watch for today
The US and China hold a tense trade meeting in Washington. One hundred days after the countries formed the “US-China Comprehensive Economic Dialogue,” the US is threatening sanctions on Chinese steel, and president Donald Trump is criticizing his counterpart Xi Jinping for not reining in North Korea.
Citigroup names Frankfurt as its post-Brexit European hub. The US bank is expected to announce its retreat from London as the UK moves toward exiting the European Union. Citibank and Bank of America are also planning to boost their presence in Dublin.
Germany mulls the future of diesel engines. A court in Stuttgart will hear a lawsuit that could force automakers to retrofit vehicles or even ditch them completely to reduce air pollution.
While you were sleeping
Goldman Sachs and Bank of America traded places. Goldman’s traditionally strong bond-trading operation posted a 40% decline in second-quarter revenue, while Bank of America posted a surprise drop in net interest income, usually a cornerstone of its business. Shares of both banks declined sharply.
Daimler recalled three million diesel vehicles in Europe. The automaker is trying to get in front of the ever-expanding emissions-cheating scandal. Stuttgart prosecutors are examining two motors that were installed in more than 1 million cars, including the Mercedes GLK 250 and GL 350 SUV.
Chipotle plunged after a fresh food poisoning scare. The closure of a restaurant in Virginia due to fears of a norovirus outbreak sent the chain’s stock down more than 5%. Chipotle has struggled to bounce back from a string of food contamination scares in 2015.
The US recertified the Iran nuclear deal, then hit Tehran with fresh sanctions. The Trump administration acknowledged that Iran has met the conditions of an international accord, but also criticized its “malign activities.” The new sanctions target individuals who allegedly work on Iranian military programs and hackers accused of stealing US software.
US Republicans suffered another major health care setback. GOP senators have already admitted defeat in their attempt to repeal and replace Obamacare, but a backup option—repealing the health care reform law and deferring the consequences—was abruptly torpedoed by several moderate senators (paywall). Trump says his plan is now “to let Obamacare fail.”
Quartz obsession interlude
Michael Coren on all the times Elon Musk has trash-talked his own stock. “Tesla CEO Elon Musk keeps telling investors Tesla’s stock price is wildly overpriced based on today’s performance despite his faith in its future. Investors keep ignoring him. Tesla is now one of the world’s most valuable carmakers.” Read more here.
Senate dysfunction? / It’s good business. Record highs / everywhere today.
Matters of debate
Apple is experiencing diseconomies of scale. The next iPhone will always be constrained by its own immense production demands.
Robots will take fake news to a new level. Technology could allow us to make videos of events that never happened.
The UK’s new Jane Austen banknotes are a flirtatious lie. The famously plain author has been given the “Georgian equivalent of an airbrushing.”
Manchester residents don’t know how to share. Widespread vandalism and antisocial behavior is making life difficult for a Chinese bike-sharing startup.
Britain is banning ads with gender stereotypes. New legislation prohibits typecasting girls as ballerinas and boys as engineers.
Vomit is a big problem driverless cars. Ride-sharing companies that go driverless will have to deal with people’s “nasty habit of throwing up in moving vehicles.”
Cash is going extinct in China. WeChat and Alipay, accessed via QR code, have become ubiquitous for e-commerce and street food alike.
T. Rex was too big to run. New research suggests the dinosaur’s legs would have snapped had it moved any faster than a “brisk walk.”
Our best wishes for a productive day. Please send any news, comments, Tesla trash talk, and driverless vomit solutions to firstname.lastname@example.org. You can follow us on Twitter for updates throughout the day or download our apps for iPhone and Android.