newco, not exciting and sexy. the company is also saying it will be shuttering 230 stores over the next two years. look at gap right now, a gain of 17%. this separation is expected to be done by 2020 but you know, if you put aside old navy and gap, athleta has become unbelievably hot and they have something that is kind of newer, hill city, men's sort of outdoor wear. then there's gap, banana republic, intermix, they will all be part of the newco, under the umbrella. but athleta is the competitor to lululemon. investors are energetically buying up shares of foot locker at this hour. the company's stock is jumping rather extensively here, by 5.33% after fourth quarter same store sales beat estimates. foot locker, one of the top gainers on the s&p 500. >>> with investors feeling optimistic about a potential trade deal, top white house adviser larry kudlow says quote, a fire has been lit and a deal could be signed later this month. here's what mr. kudlow said when he spoke with stuart varney earlier on fox business.

the question for investors is would you want to hold on to newco?i guess. >> i've spin the spinoffs, yum and yum china, you see the spins and you theoretically want to own the higher growth stock and that doesn't necessarily turn out. >> cbs/viacom was an example for the first ten years. >> remember what that happened. >> dividend payer for a different shareholder base, yeah. >> when that happened, they made the deal of course, the big thing for sumner redstone, and then when they split, sumner came down on the floor. we did an interview and we said, well, a few years ago you made the deal and put them together and had all these synergies and now you're splitting it apart. sumner looked at me and said that was then, this is now, and that was -- that was an honest answer on his part well, things are different now, bob. >> by the way, they changed again which is why they are probably end up back together. i've got to make some calls on that b bob. >> pleasure. >> thanks for stopping by. >> let's get to julia boorstin who is in l.a. >> reporter: good m

gas is higher by 18.5% after saying it will split off old navy and newco, and investors are pleased at this. foot locker had a great quarter, up 6%. this has had a halo effect from the gas announcement. directorstting some on its board and talking about a strategic review. ebay is oftentimes up $.29. it is on theears negative list and a price target is $67. that was enough to send both shares lower. guy: one of the reasons we have talked about this already that we see was gone is that u.s. officials are preparing a final trading will. president trump and xi jinping could sign it within weeks. we are joined by our washington reporter. how extensive could this deal the? what it would -- what would it look like if we got a deal at this stage? the administration things they have something that is pretty close to a final deal. steve mnuchin, the treasury secretary yesterday, said there were 150 pages in this deal, so some serious detail potentially, but this is one of those deals where it will come down to the detail, and that detail is on the structural reforms and enforcement mechanism fr

todd: rob: congresswoman omar silent when fox newco

. >> we have old navy and newco.hey're thinking at the end of the day we've segmented old navy out what's interesting is that athleta is grouped into that bunch. if we think about what works in retail today, it's offprice and athletic the fact athleta is in there, probably starts surfacing as a larger name. >> could they have -- athleta is in the same physical store as a gap. is that why they don't have their own? >> think about old navy being totally different. strip centers. athletic can be in different areas. but athleta has been one of the other lulus. so you've had this move where there's series of other athleisure brands to capitalize on this has been one of those but they haven't made as much noise. perhaps this is an opportunity for them to step up. >> thank you for joining us. siemian siegel from nomura >> what you got? >> i might invite you over tonight. i found out what penelope is making for dinner. >> what's that >> beet loaf >> i'm not a beet guy. >> you don't like beets? >> beets are tough for me. i'd

gps, you are going to get some kind of combination now of the two stocks >> right >> the gap and the newco or old navy, rather, and the new co do you think the market either way is overreacting here with a 24% gain the short interest is high, but it's not that high >> right the short interest is 11%. i think the market is overreacting to this because you're assuming that by separating these two companies, yes, you'll be able to focus and separate focussing on two different customers, but is that going to be able to create this kind of value in terms of margins and in terms of recovery and revenues >> i don't think so. >> does one plus one equal two and a half >> not always. >> if you split the two companies, are you going drew brees as a shareholder are you going to get more than the sum of the current parts >> i think, again, you do create value by separating assets that really don't belong together because you can't put differing assets in one pot and invest in a like-minded way, so, yes, you will create value for old navy perhaps, but this much value that the market is assuming and also

and there will be some newco uter training for pilots too. our own aviation specialist, les o'brien, has been watching all of this and joins me from san francisco. miles, good to talk to you. you heard what boeing has now proposed. do those proposals quiet the concerns? >> it's going to help, amna. and i think this ida tht only one sensor was feeding that software, which could, in effect, take control of the aircraft and send it into a nose dive was a fundamental flaw. that's a sine-int failure, and so insisting that two sensors can check each oher, feed that system, and that if there's a discrepancy, it can discount that, say key factor. also, one of the things that pilots assume in these cases is that if they pull bak on the bke, the wheel, in that situation, they' able to over-ride what the system is doing to the aircraft. in this case, the mcas system that was designed as this anti-stall measure may have had a little too much authority. they comuldn't oveit. so i think this will help. it will quiet some fears. we have to watch to see how

newco, this thing is not going to be gap. it is going to be some amalgam of sustainability.ed. google b certified so they understand, all these executives talk about sustainability, they're so worried about landfill, and you speak with them off camera, they have to keep saying they're purpose driven i go to benioff and say, you're always purpose driven. now everybody is getting purpose driven that's the world these vf corp. is the most purpose driven of any of the apparel companies. extraordinary. that's a winner. >> i haven't heard that yet. david, i wonder, kyle bass was on worldwide exchange this morning. even earlier for you out west, but he did say he thought u.s. interest rates would go back to zero by next year. >> yeah. 2020, calling for interest rates to head back down and obviously weighing in as kyle seems to want to do a lot these days on china which he started to do with us, i think, joining brian sullivan this morning on this, as you said on wex and talking about all the issues we talked about so often in terms of force technology transfers, intellectual proper