Minor deal that would be open. As far as no more tariffs would be open as far as two more rounds of duties in return, they said they would be open to things. Speaking on the background in terms of noncore recession saying they still would not budge. That was an official speaking to one news source. Lets take a look at what would happen in asia the nikkei came under pressure hang seng down about. 8 and shanghai am coup about. 4 markets go up or down based on what rumor or headline at any given point on these trade talks scheduled to begin tomorrow in the United States. In europe, the bachl dax is up y about 1 looking at the treasury market, yields are higher. The 30year, a little higher than where we were yesterday the twoyear sitting at 1. 44 . Eunice yoon joins us now. Did we sleep last night. We look horrible without these thanks for pointing that out. Mine is too bright. We are going to toss to eunice ill tell you what way was thinking about on my way in. Did you hear about how many fans there . There are twice as many fans there as in the u. S. And they are serious fans too. But the numbers weve got 310 million. There is like 500 million really big fans i dont feel bad but i feel compassion for adam silver i dont know what he gets paid but what do you do right now that cats out of the bag you try to slay low that is for south park. That doesnt hurt them like the nba. Probably not. Apple getting grief for taking the taiwan ease flag off their phone they sell in china they really want it it will be hard. Nationalism is rising both here and in china. Ill give you mine. Im going to take andrews hes not here anyway i can use the light on my phone. Thats an idea. Well try anything we are pros here its like waynes world. Am i tossing to eunice you are so Many Companies over the years, like it or not become very defend enter for china . A lot of companies will have to make a choice. Reporter a lot of people are wondering if what we are seeing is a turning point the vast majority of companies in this case, the nba did issue a policy but really walked that back and said that they would have to face the consequences of upholding a society. Theyll have to walk that very fine line silver is in china today. He arrives in shanghai hes here for an exhibition game between the lakers and Brooklyn Nets there was supposed to be a press briefing today the fan event was canceled he is supposed to show up at that preseason game press briefing tomorrow we dont know what hes going to say more about why the government has been so harsh and angry. The state media has been comparing the riots in hong kong to 9 11 saying because it is a similar situation, you wouldnt allow people to criticize 9 11 in the same way we are seeing the nba chief or the Houston Rockets gm criticizing the hong kong, quote, riots hell be talking with partiers to smooth things over it is still very unclear what they dont want to have is any discussion here about what deviates hell have to work his magic here i almost feel like we are importing censorship from the regime certain things on twitter and google certain things dont show up the regime into the censorship it is weird. The sick thing or the cynical thing is that the all mighty yuan or dollar is behind it. They seem willing to compromise on free speech or whatever you want to call it. They are willing to knuckle under free business with china i dont think anyone looks very good in this whole thing when you talk to Business People i feel like when i talk to Business People here, a lot of them are fully aware of this trade off but dont necessarily feel it is the companys role to be taking a line when it comes to politics. Usually Companies Just want to get their business done. What i thought was interesting too go ahead. What we have is the equivalent of the dont ask, dont tell rules are changing companies are being forced to make decisions im sorry, eunice, what were yo going to say another one is apple. We are watching that here. Apple supports an app in hong kong that the protesters have been using to track the movements of police. They were saying that apple needs to be able to distinguish right from wrong they asked a receitoricle questn will apple have to make that same decision . Apple talked about increasing chip suppliers were up because they talked about increasing the amount of these new iphone 11s by 10 . A lot of that demand was coming from china china is a huge market. Tim cook made it clear that he still wants this market. Chinese people still love the iphone, the ipads and different gadgets. Other home grown brands are making head way like huawei. Let me ask you. We talk about the reaction in china. We are talking about the governments reaction. Do fans not love the nba as much is there a way to distinguish between what the party wants thats really difficult. What we see on line is often scrubbed very quickly lowest estimate ive seen is 500 million, highest is 800 million. That tells you how many welpeoe really love the nba. People who are under tremendous amount of pressure the chinese officials again said they were pulling their relationship they were doing it vivo and tense it is pretty much every single nba partner had pulled out the whole thing is mind bogling. The world really isnt that big of a place one guy in houston, gm of a team on twitter can do this literally, the entire world is talking about this it is really weird and scarey. I wonder about hong kong and the future of hong kong. Always a weird dynamic a portal to all that business in china that sort of existed in a really weird place i dont know which expression to sus. Does it ever go back to the way it was can it it might ive been talking to some high level people who regularly meet with government officials. They say the thinking there is just to wait things out. They cant necessarily be seen coming in and cracking down but that it is going to be a waiting game waiting and watching for protesters and protests to die down it will be difficult to unscramble the egg but just because theres been so much anger on both sides about what is happening it doesnt necessarily help that beijing has been building up this level of nationalism around or against hong kong here and also in hong kong, people are angry and we see videos all the time of people getting angry at Chinese People just going about their day. Those make it more difficult to see how this is going to resolve itself a lot of them put hum ty dumb ty back together again, cant put tooth paste back in a tube there goes eunice. Shes gone if you were still there before i dont know thanks, eunice we are going to continue this discussion to some extent with texas senator ted cruz, he tweeted in response. Cruz said, in his words, as a life long Houston Rockets fan, i was proud to see morrys response cruz joins us this morning on the squawk line from taiwan ahead of an expected trip to taiwan there was a backtrack of the backtrack. Now i think there is a backtrack of the backtrack to the backtrack. You cant envy the nba or the commissioner in this where do you think we are right now, senator good morning. It is good to be with you. You are right, weve seen the nba falling all over itself to backtrack. Everybody understands why. There is big money in china. The nba and nba teams make a whole lot of money that being said, this goes to show how china tries to use economic coercion and blackmail to get companies to engage in censorship what he said was perfectly reasonably the protesters there are standing up for democracy and human rights they are walking the streets of hong kong carrying quotes from americas Founding Fathers they are asking for the same rights everyone wants. To see what the nba did. As soon as he tweeted this, the nba suspended the coverage in china. Knocked them off tv, boycotted them we saw a whole series of just abject apologies i should say, the nba should be better than that when American Companies and a Sports League like the nba which is truly a global brand is willing to press itself in pursuit of additional dollars in china. That is unfortunate and a dangerous precedent. The wokest of our Sports League here too. Whether you like being woke or not or appreciate it it is sad that being woke doesnt really go that deep, does it when dollar signs come into the picture you can leave woke behind and come back to the real world. This is a very cynical story, senator, right joe, it is a striking contrast weve seen when states in the United States have passed laws for religious liberty. Leagues have been willing to declare boycotts and announced them loudly in boycott to lgbtq issues thats okay. It doesnt cost you anything here, when the Chinese Communists in hong kong are oppressing or surpresident ing free speech. Where the stakes matter and there is a choice between standing for free speech and human rights, the nba has demonstrated where its priorities lie i think the nba should have stood with the rockets and said, you cant boycott one team any time an American Business does business with china, there are risks entailed if our companies are an arm of chinese censorship, that exports their oppressive policies to the United States and globally right kind of a bad move if anyone is saying that President Trump is on the wrong track in terms of some issues. You dont have to agree with all of iz pings. 0 hell be on. He may be the last person in the country that doesnt say, wow there is a problem to some extent with this relationship. Senator, can i ask you a question this morning, futures are up by about 200 points based on a report based on a news report that shina may be willing to do a deal suggesting he would be willing to buy an additional u. S. Dollars. Does that sound like the type of deal youd support im hopeful well get a good deal trade with china is important. When it comes to the president s trade agenda, where i agree most is with china. For a long time, their trade policies have not been fair or on a legal way for the president to try to lean in and get fairer terms. I have urged the president is to focus on china and try to open up that market but dont engage in a battle with our other partners it would be good to see a trade deal with china. We can do that without linking back to this nba issue we dont have to do that to be able to engage in trade. Senator, while we have you here, some other stuff going on. What would you need to see in terms of this ukraine situation for you to say, okay, im going to vote with romney if he happened to go that way . Do you see any possibility of President Trump losing 20 snapchats . Look, im not going to engage in hypotheticals i can tell you that the behavior of House Democrats is that they have been looking to undue this election since november of 2016. The view of House Democrats is that they want to impeach the president. I think there is a very good possibility the House Democrats will vote to impeach it is not based on actual conduct or fact. They are there before any investigation. The snapchat, i voted with all 101 senators to investigate and find out what happened we should look at the facts. Thats not what the House Democrats are doing. They are trying to undo an election because they are unhappy with how the American People voted in 2016 can you tell us why we are talking to you in taiwan how much can you tell us i know you werent free to talk about it before. Sure. I am in the midst of an end oino pacific tour i left hawaii and went to japan. Met with Prime Minister abe and had a good discussion. Great for texas farmers and ranchers opening up more agriculture agricultural trade spent quite a bit of time talking with Prime Minister abe about security threats the dominant threat is china china is getting more and more aggressive military. They are vesting billions in modernizing and massive amounts of money essentially trying to get impof errished governments to take attractive deals or be in a situation where china can control the infrastructure that purpose of this tour weve envisioned as a friends and allies tour meaning friends and allies of america throughout the pacific and discussing ways to stand up and coming from increasing the president would say some of that 500 trillion, we are basically funding the build out of chinas military. A point well taken right i think that is exactly right. It is one of the most Significant National security improvements weve seen in the last 2. 5 years with this president is taking china seriously. Another example is huawei. A Telecommunications Company owned by the Chinese Government. They have been going throughout the world offering free equipment to build a 5g. You take their equipment, now the Chinese Government has unlimited spying capacity. That is a very, very bad deal for america and our allies the Trump Administration and a number of congress have worked together to focus on our National Security threat they were taken to huawei and put in a position and thankfully, theyve stepped back that is a consequence of taking that threat more seriously are you headed to dinner . I am heading to dinner with theify wan hes foreithe taiwang minister tomorrow is their national day they call it the 1010 day. Ill continue to tour throughout the indo pacific thank you take care futures are on the move talking rebound from yesterdays sell off potential an analysis. Looking at the days biggest winners and losers in the dow. Announcer todays big number 500 million. Thats the amount of people in china who saw lstatea one nba game on tv last year orlando isnt just the theme park capital of the world, it also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. Few turz on tutures on the morning. Joining us this morning. Our guests, how are we supposed to sfefeel about the performanci the last year or so. We are flat . Well, you had the huge move in 17 to early 18, since the advent of the china mess, that has stirred the water. Is it Spring Loaded you are looking at a potential air pocket here. Ive got two dates circled on my calendar october 10 and 18th. Important dates. What is the november 17th date thats the apex summit in chile. How big is the air pocket we felt it was maybe 5 to 10 . We are half way through that some folks think we are going to retest where we were we are experiencing this air pocket right now how would that play how long would that last in terms of being supportive . Will earnings take over . Absolutely. There has been a deceleration because of the china overhang. If we have a path to a positive resolution that will have an impact on 2020 we are at 2. 4 gdp the street is at 1. 8 the delta is that i think we have we have a bigger view of china. If china happens, do you mean if there is a substantial deal or a minideal where they buy more ag. We agree and there arent additional tariffs step one, lets do no more harm wed love to see this at minimum a skinny deal. Maybe we get structural reforms. That would be the best possible case what are you telling clients . China has been the big overhang with all the inquiry going on, i think china has been more emboldened you thought that. But what if Elizabeth Warren or the alternative to trump if it was biden on his comments on china, theyd love him. Why would they want to wait for that maybe the devil you know it is a little ways out if trump gets reelected, they are no worse for waiting if not, theyll feel their happened is stronger they are thinking, what have we got to lose at this point. Id say if we get any positive progress, just agreeing not to raise tariffs. If we can just get to that point where we stop raising tariffs completely and just zin to discuss, i think that would be positive how are earnings going to play out as expected . It will be a little better. Depending on which source you go with, youve either had a modest increase right now, we are looking at a 4 earnings. It will probably be better it has been better the estimates come down and you usually have a bit of an outperformance when we return, the gm auto worker strike enters day 24. What it means for both sides and whether it could send michigan into a recession sometimes, the pressures of todays world can make it tough to take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Announcer welcome back you are watching squawk box. Live from the Nasdaq Marketsite in times square. We have been getting some reports suggesting china would be open to a deal, perhaps a skinny deal. If you want to call it that. More on deals which are due if they were willing to buy additional exports to the tune of about 10 billion these are reports based on officials with the dow indicated up s p 500 up and the nasdaq up by 81 a developing story, in california nearly 800,000 homes and businesses expected to lose power starting today because of heightened wild fire risks impacting more than half of californias 58 counties including much of the San Francisco bay area the question is, can you continue to have power supplied without the possibility of fire. Do you understand how it is here, the lines get heav