Face it is making a bet that Virtual Reality is the next thing for computing. A 2 billion debt. The Worlds Largest social buying oculus. It is the maker of the ski goggle like device they have rist. Relate to the mobile technology party. Facebook has made big acquisitions. The bought instagram in 2012. Trying to get ahead of the curve, putting facebook into your home and tablet. We have one billion people using our mobile apps. What is the next frontier, what is the next platform . Billion thating 2 is Virtual Reality. It becomes part of our everyday lives. These are awesomely the most social platform ever. It seems pretty insular, being in a Virtual Reality. You can play games erie it maybe the future is playing games with other people. If you are watching a game of tennis. 23. 1 million facebook shares. This is ahead of the curve. And they are talking about the other applications. How is this going down with investors . Shares lost on their value. 0. 8 after 8 p. M. U. S. Time. Maybe questioning this deal more. They are paying 2 billion for the team of 100 people. Trying to get it the curve in terms of technology because they could not make it themselves. Interestingly, the people who are really angry about this deal are the Software Developers for oculus. They raise money before and raced it on kick starter. Either they are well ahead of the curve or this is the wrong bet. We are going toward hardware. Google glasses that big deal we had, and rayban was getting into the glasses. We have technology on our watches. They still have 11 billion worth of cash and equivalents on their balance sheet. Potential deals for their head. King digital entertainment, the maker of the smartphone game candy creche raised 500 million in its ipo. It values the company over 7 billion. Jon ferro is here. A huge buzz around this company and the ipo and the games they produced. Terrifically popular. I will get the stats out of the way. Look at some of these numbers. Three of the top 10 apps come from king digital. 600 million installed on mobile devices. Game plays. Ion reality check, it is not the king digital ipo. It is candy creche. Three quarters of the money this Company Generates comes from one game. Is this a one trick pony . To the translated business that has longevity. Low there is significantly barriers to entry. You can make game like angry birds for less than 150,000. Compare that to the 200 million to make grand theft auto. A lot of new entries can come into this market. Was raced athy it the midpoint of the range. It is priced cheaper than activision or zynga as well. On a projected sales basis when you look at some of the estimates it is 2. 7 times sales. When they come up with the prices, looking back at zynga. What about the comparison of. Odays ipo to the tech ipo the bottom line is no matter what this was priced at less night everybody would be talking about the same thing this morning. You cannot stop people getting nostalgic so i have done my bit. Up ipos then and now. The business week has in some great work. Medium price to sales ratio was 30 times in 2000. 5. 2 times on average. This is the raise in over 100 million in u. S. Ipos. The average hop on the first day, 65 in 2000. Ipos done by profitless companies, that might sound like a lot that 80 in 2000. I will say the year 2000 is hardly the greatest benchmark to draw comparisons with but things are little bit king is making money. It does have a profit margin. Is the big difference. A lot of people are talking about this one particular fact. This company is valued at around 4 billion pounds. It is sterling. Morrisonnd the same is supermarkets. The real brickandmortar companies with a lot of Properties Around the u. K. That produces a game you cannot touch or feel. A is very hard to Value Company like this. Candy has paid played creche . I do not know what you were doing last year if you have not played a. Played it. You have. Ipo, stay withg bloomberg. Later today on markets makers at 2 30 p. M. London time. Thank you. Obama continues the European Tour that has been dominated by the crisis in ukraine. Russian reaction. Good morning. There is that no russian reaction. President putin presided over an Award Ceremony for actors and artists. The day before he presented for over an Award Ceremony for people at the sochi games. The mo is it is business as usual. We have taken crimea. It is ours and he would be careful not to make any provocative comments. We have not seen any provocative action. The kremlin banking on the idea leaders with eu their individual economic interests when it comes to their relationship with russia is going to prevent them from unifying joining up with president obama and rationing up the sanctions. Theyre hoping this whole thing will just blow over. We are expecting the imf assessment to the ukrainian bailout request. Tellis tell us what is at stake. We are expecting that announcement today. We heard from the ukrainian finance minister saying that what is at stake. Aeyre trying to stave off default. The ukrainian economy is looking at the prospect of a third recession. The interesting thing here is the detail. The conditions of those imf loans are always very difficult. Theyre going to involve at least ukraine raising its natural gas prices. Particularly in the east of the country where ukrainians tend to have less money. That would is what would be interesting. That imf loan will unlock a lot more aid from the u. S. In terms of that Loan Guarantee and aid from the european union. Thank you. Have more from moscow with a guest who says the sanctions standoff will continue to hurt the russian market until 2015. Ay with countdown 10 minutes after six in london. Time for todays company news. Posting 2013 profits that beat analyst estimates. The chinese demand grows for liquid milk and milk averages. The stock surged the most intent months. They are winning back customers through or foreign partnerships. And returning to profit in 2013. Spending cuts made up for a decline in advertising. Richard branson spoke to emily chang after the screening of his documentary. Thoughts oned his virgin galactic. We want to enable you and me in as many people as possible to the come astronauts, to have a to to marvel back it be able to go from one country to another at a fraction of the time. We cant create massive arrays of satellites that can transform things. Welcome back. From the hague to brussels with a morning stop in the fields of flanders. President obama continues the European Tour. Our International Correspondent joins us from brussels. What is next for obama . The takeaway was no new sanctions. Unless there is a further incursion. You did have some fresh rhetoric. But Great Britain was acting out of weakness, not strength. Theyre preparing the of sanctions a fresh enter into more ukrainian territory. It has also been the European Councils suggestion that should , sectoralfurther sanctions should be appropriate. It would be like energy or finance or arms sales. Or trade that exists between europe and the United States and russia. It was not lost on any european leaders at the gseven. Economic sanctions could mean economic pain in home. I spoke to the danish Prime Minister he said it is the job for local leaders to prepare their people for potential economic pain. It is not my assessment. It would have an impact and it is my belief as politicians. E have to go to our voters we want to adhere to basic principles because they are at stake that we have to do this. Rex president obama will be touring the fields of flanders. The world war i site. A time to reflect on the challenges that lie ahead and the challenges that could be presenting itself with this ukrainian crisis. He will be meeting with natos secretarygeneral. Today was meant to be about trade between the u. S. And the eu. Will that be tackled or will it be overlooked . Yeah. That will be on the agenda. No one at the hague disputed the fact that the official agenda was subsumed by the g7 and the crisis in ukraine. That will translate to brussels. Obama hinted at this yesterday. The idea of Technical Analysis on which industries would be hurt by additional sanctions. Theyre figuring out what sort of package to put together. If they do to sanctions, industries in europe, economies in europe will be heard. No one was is abused of that notion in the hague. There is more of that that will be going on. Just figuring out where the pain would come domestically. The u. K. Is set to put stake in the u. K. Bank. Stay with us on countdown. Hello and welcome back. Is 6 21ime in london a. M. Inflation came out at the lowest level since 2009 but you would not think it if you had a full english lately. It is greasy and gorgeous. Because of rising good prices it is getting more expensive. Jonathan ferro explains how from his local greasy spoon. Can i get a black coffee . You might have heard that inflation was pretty low. What does that mean for you and i . The price of food has gone one way, up. Brit,y selfrespecting this is breakfast. Staple of any full english. S [inaudible] later this year. The humble piece of toast is under pressure. Drought and wheat prices are under pressure. Then you have coffee. People call this an Early Morning drink. I call it a necessity. It is about one place, brazil. The biggest producer of the stuff in there is a drought in the country that is driving the price of this cup a lot higher. The next time they tell you that have you is low, thought of the humble british breakfast. The vegans are cringing at the site. Can i raise one point of order. Coffee, really, with a full english . It only comes with t. A. Te time he saw carbs. Did he eat the toast . His local greasy spoon. In chelsea there are not too many greasy spoons. Reality it is reality in chelsea. Where was the black pudding . Controversy. The u. K. Government is selling more than a 4 billion pound stake in lloyds bank. This will be the second disposal since rescuing them under. Minas cranny is here. Talk to me about profit. Technically. It is a profit. The government, there are two prices. The price at which the government went into lloyds. The breakeven rises we talk about it bloomberg. 61 pence. That strips the insurance. They paid insurance on the toxic assets. Even the price is 61 pence. The first town time around they made 67 pounds. Market is the average price. Nd that is 73. 6 has been talk about whether your average joe is going to get a chance to buy into this company. This is the precursor. Osbornestep two, george getting to walk away from lloyds. Well they restart before the end of the year, that is the next step. It will be taken out to the man on the street. They will not allow it to pay a dividend. That was one of the most important facts on this. I think were getting closer to them. It is good news for the ceo and for the government. It is good news for us. We are the shareholders in this company. That is critically important. Indicated, they will have to discount it from yesterdays closing prices. Probably down three percent or 4 . See you later. We will have more on the game makers ipo. Welcome back. Lets get over to jon ferro. We want to put the best major performing currency in. It is the aussie dollar. Suggesting the economy may strengthen later this year. Investors aret looking to unwind. You look at some of the data last week. Large speculators cut net short. This one will go lower by the second largest amount on record. This one right here, the bestperforming ager current see this month. These are the Bloomberg Top headlines. Assessmentl get an on the bailout request. Ukraines finance minister said he is completing talks with the imf for the 15 to 20 billion loan to avoid default. With 78 days to go before the opening game of the world cup, sao paulos corinthian arena remains a construction site. Secretary general is holding a week of talks with local organizers and government officials. And cut their airways foll owing the deployment on london heathrow services. The Business Class service will operate out of heathrow. We decided to have an aircraft that will be fitted by all Business Class into cabins which will operate. We will not be able to operate from london because the aircraft is a bit heavy. Candy crash pulls a players emotional triggers. It seduces and frustrates and knows how to get you to keep on playing. Rachel crane takes a look at why so many people spend their time with those winking jellybeans. Five of them. So addictive . Rush there is 97 million of us playing this game every day. Candy crush is the latest on are aine of games that minute to learn and a lifetime to master. Players is that get an immediate sense of accomplished. Competent. Mastery of the game is elusive. It keeps people coming back for more. Used up all of your lives, candy crush can prevent you from playing again for up to 24 hours. That lengthens their appeal. You cannot binge on it and get tired. There are always ways of lot around these limits. If you are seeking them youre probably already addicted. Most games require both hands. Which means you cannot do anything else. Candy crush lets you multitask or you can eat while you play. You can talk on the phone while you play. You can go to meetings and not Pay Attention while you play. King digital, why the makers of candy crush hope the games success will lead to bigger prizes. The Game Industry is full of onehit wonders. Some thinking helps to avoid with newer titles that are in the works. After all, you cannot live on candy forever. Kings ipo. On is kicker one trick jellybean . I think the point is made really well there. Are full of these games. Theyre not really hard to copyright and very easy for people to copy. Particularlyot dutiful. Withoes it go down aficionados . S and thesek at thing are very quick fix. Very easy and very addictive. Very solitary. Beenlot of capacity have with people like hasbro. Games were about family and friends and playing together. The trend now is to play these things on your own. What is the effort is this model . Wherethese prehim games it is free to download and then you pay as you progress or you go down the angry birds route where it is a couple of dollars initially. What is the preferred route if the gamesg down producing road. They actually stopped all ads game last year. If you look at flappy birds which was an they were making 50,000 a day in ad revenue. The fact that king could pull , to stopat completely you waiting a day to play and to serve your addiction it does not king makes a profit. I must Say Something about their Business Model as opposed to the other apps makers waste have we have seen list that do not make it to profit. This is one model but constantly coming back to it and not purchasing is a very lucrative model. It has been lucrative for angry birds renting out into various merchandising roots. It wants to expand into an animated film. It is even talking to disney. Will we be buying our jellybean tshirts . I do not think we have got a choice. There is lots of talk about king. You look at Something Like rubio rovio. Ands cuddly toys merchandise. That managedrand to spread. It is all happening in finland. Makesve got rovio that angry birds. March onas taken a rovia. There are lots coming out in eastern europe. As we said it is easier to replicate. What about the future of gaming . It has implications beyond gaming. Facebook buying oculus which is an eyewear maker. It makes the gadgets you wear on your head to play certain games. Is that a bold move, is that a good move from facebook . Rex bold for now. That will pay out for now. There ahead of that time. That they have played catchup for so long. This is try to go beyond mobile. Think we think about mobile to mobility. This is watches we wear and connected rings, earphones, glasses, whatever they might be. There is all sorts of wearable devices. Youre going to be the winners in the wearable device market, do you think . Rex we think it is about [inaudible] fits together it it works well. Amazon or samsung or facebook or apple. There are 10 or more layers that put things together. What do you think facebook will do next . It has made 40 accusations at 20 or so billion dollars. Where next because it seems to be battling it out with the likes of google. They have to make these acquisitions work as well. If they situse inside. Perhaps it is sign for reflection and see how they will work with it. Thank you very much. Just a reminder. We will bring you an interview with the king chief executive officer later today on market makers. 2 30 p. M. London time. From music to travel. Sir Richard Branson has used his business acumen to push his way across boundaries. His emerging galactic adventure. It would be i am terrified of giving specific months. Things can get delayed. I would be bitterly disappointed if we are not up in space. How about this . What is your vision for the space, 5, 10, 20 are who now. What does look like a question mark tremendously exciting. Areuse private Companies Running space trouble travel. We want to use as many people as possible to have a chance to to goback and to be able from one country to another at a fraction of the time that currently takes. And also colonize other planets, to have hotels in space. Ando wonderful things create massive arrays of satellites that can transform things for the better back here on earth. What is the last step to get to that first flight . We are putting the spaceship among the rockets together now. They have been tested. Test will be a couple more flights in then we will be on our way. Leaders from china and france are coming together in paris to andnt the deal between them the french government. We will take you live to paris next. The people consider themselves part of russia. Oe have got to stop him now s he does not go any further into eastern crimea and that is where we need to draw the line. That was former u. S. President to make carter on the charlie rose show. You can watch the entire interview tonight on bloomberg television. Judge has thrown out a lawsuit by a new york man claimed he is entitled to a multimillion dol