alix: jeff mccracken, thanks so much.: let's head to abigail doodle, reporting live from the nasdaq, reporting on lululemon. abigail: lululemon one of the few stocks to be trading up. a is raised from abide to hold, signifying market expansion opportunities. wells fargo upgraded lululemon from an outperform to abide. chainements to the supply should help the company overcome 2015's big problem of discounting for the same margin expansion potential cited by jefferies group the stock has been expensive relative to the cost. with a 20% short of risk, the company may need to execute on this possibility to see the stock go higher from here. turning back to the sea of red, j.d..com -- the biggest percentage loser in the nasdaq 100 on its worst intraday drop on record. it was slicing through support of both its 50 and 200 day moving averages. all this comes on sympathy with the big selloff of the shanghai composite index and renewed concerns around the potential for slowing global growth. scarlet: thank you so much, abigail. abi

joining me now, jeff mccracken and brian buckwalter -- buchwald. ego, paul kedrosky, contributing editor. welcome back. jeff, i will start with you. what is driving all this? >> it is not just about china. it is about the united states. japanese companies want to buy more assets in the united states. so do companies in europe. it is not going through the roof. it is 2%, 2.5%. it is still the largest economy in the world. still pretty good compared to the rest of the world. this is a desire to have more exposure to the united states. right now, it is chinese. a month from now, we might be talking about japanese companies buying assets in the united states. this has been going on for a couple years. emily: let's talk about what is going on in china domestically. does the domestic slowdown meeting we will see fewer of the deals down the line? >> i do not think so. i actually think we are going to see more. it is a broader phenomenon than access to the u.s. market weiss. -- marketplace. this is patriot nation of the yuan. the same phenomenon is driving

in today's, what is the big deal , we have jeff mccracken from joining us now. is not the first time that mccracken is making the deal happen, why this time around? jeff: they're about 2 billion reasons if you will. baxalta was around $32 billion. they won in more cash in the deal and they're going to get cash in this deal once tickets announced -- a gets announced for you will value them at about $32 billion. -- once a gets announced. about $32alue them at billion. it is not an all stock deal. be whollyrs would dependent on shire rocketing and getting stronger over the years. stephanie: how do shire investors feel that this? drew: it has been a really interesting story. they have done a number of smaller deals. -- they way back when had a deal with abbvie. it was going to be around $50 billion. that fell apart. like maybe a few hundred billion dollars worth of farm and deals ago. that fell apart and they happen wondering what this is company look like? you're looking at a deal where it is a transformative deal that they are looking for. shire is big on treatmen

jeff mccracken joins us. >> johnson controls has been trying to change a lot it they have about halfess which is auto supplies. they are spinning that out so that -- so there goes half the business. the deal with tyco will allow them to domicile in ireland and they will become a home /offices/home building building type of services providing refrigeration or electrical systems and then security systems when they get tyco. they will become a clear industrial company. david: who is running the deal? this is matt miller steve, he doesn't believe mergers exist. mergewhy would you write when clearly johnson controls will by tyco. >> i don't disagree with you. put caphen disney cities abc, they said it was a merger. it's to be nice to the people they are buying. that's the simple answer. >> it's politically correct language that's all. >> some companies put it in their statement and others are more clear. cio will run the combined company going forward. this started falling up back in 2001-2002. it was always seen as a good place to go if you are an industrial company. headquarters in irel