Broadcasts of preseason games are suspended in china while the nba commissioner says profit can come before principles. And as we said, boeing under pressure, the company sued by the Union Representing pilots at southwest over the now grounded 737 max. So tensions between the u. S. And china ahead of trade talks expen scheduled for thursday in washington targets include ai startups, a spokesperson for the Chinese Foreign ministry quoted as saying stay tuned for retaliation. And then there is additional reports out of the Chinese Press theyre going to cut their visit short by a day not carrying the official title of envoy, they havent been given official instructions from xi. You couldnt have a worse way to start these talks lets go back, run the tape back to friday. Larry kudlow was optimistic something would happen and there were other members of the administration saying what the heck no they havent agreed to any of the seven deadly sins to roll back the intellectual property, something on fentanyl. The one thing, this is new, the Commerce Department, it is wilbur ross, and hes talking directly about human rights violations, the only other person that really talked about that was senator warren. And human rights violations, thats something that there was a general manager, i dont know if hes still a general manager of anything, still there. He still is you know what im talking about. Of course, i do well talk about the china and the nba thing. It is interesting how it plays into the larger the larger conversation in the Financial Markets about the relationship between the u. S. And china. You didnt use the word craven billionaires are worried about viewership and theyre worried about the idea that perhaps lets come back to china and u. S. But im saying this you cant get you cant go into trade talks with someone where youre saying, listen, you persecuted this minority. No, lets talk about soybeans . Where do you put the chinese they did start to increase their purchase of soybeans on the other side, China Morning post also has this story saying theyre going to leave early or plans may be to actually negotiators to leave earlier than anticipated a day early. Not a montana situation. No. No so you got a lot of things here that dont seem to one thing is certain is that if to a great deal of success being expected at the upcoming talks. There were people who were buying stocks, betting the things that were going to go okay and ill tell you, i dont know if you look at that little item about capital restrictions yes i know that there were people in the white house, i did a piece last week about how america would be saved mightily by the end of the chinesism pos because they have done so poorly the white house was interested the story was the other way, wasnt it . It is restricting flows of capital from the u. S. Into china. Yes china stocks within u. S. Government Pension Funds. Chinese the government our government is not keen on any more ipos from china well, kudlow is on the tape yesterday saying delisting at least is no not on the able in. But more ipos, not encouraged is my understanding as it is, there is a lot of index funds cant buy these. Deirdre bosa just talking about stripe, 35 billion valuation. Im thinking, are they kidding me it processes millions and millions of transactions, blah, blah, blah, blah but theyre unrealistic out there. You know what they got to do they got to smile directly did you see how many i know youre going to say, jim, youre far afield of everything i have to be like marshall st. Gerard, i dont care were in a pivotal moment. We have too many ipos and they wont stop we have china talks that will flop suddenly say, you know what, we have to stop putting muslims in concentration camps. Youre right is that how the talks start . Youre right the timing was interesting for us to make a stand on behalf of the uighurs, yeah. At the same time do you know how much money is involved with china and the nba quite a few billions. Almost half a half a billion fans in china. This is about freedom of speech in china. You know where else there hasnt been that much freedom of speech hong kong. Is that next i thought you were going to say u. S. Congress when it comes to trump appointees being able to speak. Or not showing up thats another issue. Some not showing up to testify because the state department has requested lets say youre a chinese negotiator and xi wakes up and says, are you kidding me, they just put 28 companies on the black list including some of our most Important Technology companies . What do they have to do some are this is not what this is how not how you start talks. And it does coincide with this out of nowhere controversy regarding basketball, more fallout for the nba today as david says cctv announced it is suspended broadcasts of the logs preseason games. Ten cent will stop streaming nba is feel heat in the u. S. For calling that tweet regrettable in tokyo, commissioner silver defended moreys right to free speech. The long held values of the nba are to support freedom of expression and certainly freedom of expression by members of the nba community. And in this case, darryl morey as the general manager of the Houston Rockets enjoys that right as one of our employees. What i also try to suggest is i understand that there are consequences from that exercise of inessence his freedom of speech and, you know, we will have to live with those consequences it is my hope that for our chinese fans and our partners in china they will see those remarks in the context of now a three decade if not longer relationship silver will go to shanghai later in the week. He did say, quote, were not willing to compromise. A lot of people were saying the nba had this shadow release saying we dont condone, we favor we have a relationship with china adam silver revealing himself as a man of incredible principle. Hes going to cost the owners a lot of money because he thinks there is something more important in life. Have you ever met this guy guy is like a total hitter hes not owned by anyone hes you know what hes got hes got a conscience. Rick wells, the general manager of the golden state warriors, when he joined us yesterday, seemed to be on that same track, carl rick. Yes, ceo. Conscience too . He was saying, were not going to stop talking about it and or at least restrict in any way the speech from the players or general managers. Remember when stalin used to white out people, i think they whited out the Houston Rockets you cant even you cant google Houston Rockets nothing comes up im not kidding you think im kidding . Im sure youre not im sure youre not. They wiped out the use yao ming this is the biggest business story right now because i think that you have to watch nike, which had fabulous numbers, who is going to be on the black list if they said at 3 30 last night, they came out and said, listen, were ready, were reviewing, who is on the black list so obviously they take apple down doesnt apple ever get tired being taken . Mellanox, nike, starbucks, the usual suspects back to that conversation they never have gone there no, they havent, but if we ever talk you see it within this dispute with the nba you got a lot of chinese nationals who are only seeing state media and have a view of hong kong protests that is decidedly one way. But there is a lot of nationalism, but never gone to that, and the government has never proposed or moved anyone toward any sort of boycotts that we have been talk about now as a possibility for now over a year. It all began it began with pingpong diplomacy and secretary kissinger, is it going to end with nba diplomacy and Houston Rockets, gm . Great game. People love the game. It is a huge story. Thats what everything was geared toward. Nba2k. You can forgive viewers for being confused human rights has not been framed as the main motivation for these trade talk and now it is . Well, look, i always noticed and im sure a lot of other people, doesnt the president care about what is happening in hong kong . Yesterday senator Elizabeth Warren, david, still i think punitive frontrunner, came out very much in favor of free speech in hong kong and what the general manager kim out came favor of what the general manager of the Houston Rockets said shes remarkable i keep telling everyone, including president xi if he watches the show, i dont know, that they think that they have got they can wait out trump, well, they better hope biden gets elected because nobody is tougher than senator warren nobody she actually cares about religious freedom, she cares about hong kong. And, by the way, she says no talks until they stop polluting. Can you imagine, remember the president , i think hes pro pollution, thats presented wrong. He doesnt think pollution causes as much problems as say senator warren does, right okay. This is the most important story in business right now. The nba story or the china and u. S. They linked it to religious freedom. Now, the october speech at the hudson institute, by Vice President pence, the container, the always come back to that very hard, hawkish speech. That was a speech that they are the soviet union they are the new remember, the whole point of pence is the term we used to use in this country, state department, after they lost china for us, godless. Talk about a godless administration the chinese economy of today has far eclipsed anything the russian economy or the soviet economy could have ever dreamed about, right but godless is godless. That sounds soporific. Pence is talking about the regime being godless i know that russia was small, but when the pope turned against russia in the early 70s, good luck i know that china is not going to be turned on religious freedom. Well this is important vioxx has a nice piece today arguing the reason a lot of u. S. Interests were swarming into china was the hopes that free markets and business and capitalism would change their view thats why they put them in the thats when they put them in the wto they thought that there would be a relaxation. But indoctrination, welcome to the party, this is how we all do it. I dont know. Not happening not happening at all. I think that the trade talks, market went up very nasdaq went up big last week. The hope of trade talks that larry kudlow talked about. Look, larry likes to talk about the talks, because thats how you get things going you sit in a room, you dont get the talks going by saying there are a list of 28 chinese organi organization on an empty list. They were added. But this is the most important story out there. Unless you want me to talk you want me to talk about Dominos Pizza were going to get to dominos, actually. How sharp that suit looks on carl. David, you continue to to try to get away from the core issues we will get cramers mad dash nba diplomacy is the most important. I wish we had strauss nba2k well get the opening bell, obviously. Dominos, down in the premarket on a miss. And some disappointing comps inflation soft well talk about the turkish lira, who knows. Futures are down back in a minute [phone ringing] how are we doing . Fabulous. I wonder how the firms doing without its fearless leader. You sure you want to leave that all behind . Yeah. Stay restless, with the icon that does the same. The new rx crafted by lexus. Lease the 2020 rx 350 all wheel drive for 439 month for 36 months. Experience amazing at your lexus dealer. Welcome back to squawk on the street. Lets get to a mad dash. As we get you ready for an opening bell, 13 minutes from now. Snap. David, i dont know if youre coded for the talks at goldman sachs, theyre rather remarkable they bring in ceos. Yes you are coded. I have listened. You might have seen when the snap Ceo Evan Spiegel who ive come around and think youre a great guy, come on mad money anytime you want, what do you think are the number of snaps that are created on snapchat every day . Your son and my kids, my daughter, used to, thats the way they communicate it is a Camera Company how many do you think are created each day i have no idea. Tens of millions. 3. 5 billion a day a day thats what i found out from goldman. Now, what does that mean it means why you need the apple 11 have you seen the difference between the apple 11 and the apple 8 . David, one is cinematography and the other is coda chrome okay you need the apple 11 in order to have really good snaps. Not just because of instagram, okay so now you know why that phone is selling so well thats this is a read through of evan spiegel, gave a nice talk, terrific when it comes to your really Close Friends and the people you care a lot about, you want to convey an emotion, videos and photos alou y s s allow you to emotion the way you cant do in text i think im going to have to start snapping. Are you really . Im not on snap. Youre not . No. I thought thats how insider trader things used to do things before preet barea. I urge people to see photos on the 11 versus others it is more a story about apple than snap. Is not a story more of a discussion. Yeah. Who cares about i like evan spiegel very much. But in a morning where it comes down to the general manager, the Houston Rockets, creating our foreign policy, i like it talk about how evan spiegel is driving apple. Okay. All right. Back to general manager no. Heres what i have to say trust the process. Thats the nba, trust the process. That would be sixers. That guy was a disciple by the way, the most important gm in the League People seem to forget about that hes the godfather hes the godfather all right we are going to talk more about the nba. And china. Im sure of it well also get to some i like to focus on bsg what stock is that . Im going to tell you when we come back on squawk on the street. Who says our bank isnt tech enough . Everyone, look at your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. Tell him were flexible. Dont worry. My dutch is ok. Just ok . Tell him we need this merger. Its happening. just ok is not ok. Especially when it comes to your network. At t is americas best Wireless Network according to americas biggest test. Now with 5g evolution. The first step to 5g. 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So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in over four minutes. Busy Tuesday Morning, we await u. S. China trade talks ppi september, jim, down. 3, core down. 3 year on year, though, we barely managed 2 . I think it gives you room if you have a slowdown for powell to make a move, talked about an october cut. How bad is the economy i continue to get the same read. Which is that domestic strong, international i have david farr on for merson representative what happens when you try to do business overseas. Did any of you read over the Carnival Cruise . There is still some number cuts coming europe, europe is so weak, even in cruises people forget thomas cook hurt travel from britain. We do not talk about how bad europe really is i think there is a slowdown of a step down function in europe that we just do not seem to address enough. There are reports as well this morning that the brexit talks are not going well at all between the uk and the eu at this point talks between johnson and chancellor merkel. Johnson doesnt come off as wild first in his class hes very smart. Very smart guy and the meantime, what do we have, we have Companies Like ge. Universally panned that pension program. It is a sign of desperation. Ge being part of ge, boeing, these are gm. When are we going to talk about how bad that is . 45,000 versus hundreds of thousands. You cant this is a shutdown. Yeah. I think the number of layoffs now is 10,000 in north america, right, if you include mexico and canada supply chain collapses on day 23. Do you in the see a pickup in unemployment which would be the choice here we want the fed, the bulls want the fed to cut they want the earnings to hold up and so far, yeah, pepsi numbers were good and costcos numbers were good. I think that were going to see look at nike. Nike just reported it was fabulous in china nike has a deal with the Sports Ministry to keep Chinese People in shape do they boycott nike isnt that the logical one now, i dont think they do theyre in league with the with the administration, starbucks is going straight down from 99 to 85. Is this a possible one i dont think so they hired hundreds of thousands of people. Which leaves kfc, thats yum china. I dont know i dont know how they retaliate in a visible way they can retaliate on apple. But apple is a gigantic employer. For what . What are they retaliating for in. The 28 companies we added to the i would say so. Adam silver, they got billions look, half a billion people watch the nba in china. They can shut that down. Eunice yoon gets shut down for saying some stuff. They want to keep social unr