Providing clarity off of Janet Yellens fumble . Markettelegraphed to the that the rates are going up and he did not. The fmoc meeting and everyone is doing it. Those goggles are weird but theyre cool. We will get a snapshot later on. ,mba Mortgage Applications, 8 30 a. M. Durable goods orders and capital goods orders at 9 45 a. M. That is the Market Services pmi, purchasing managers index, Art Companies spending money . No earnings to speak of today. However, king digital will start trading this morning. These are the guys who make candy crash crush. 22. 50 which falls in the range. This will be trading about 10x earnings. We will interview the ceo of zacconi,tal, ricardo the man of the hour today. How about a data check . Currencies,onds, commodities euro dollar was at 138. The ruble continues its strength. Theyear yield Australian Dollar continues to show some strength which is a back story to the week. The president is set to speak in brussels. Russian weakness, ruble weakness, the sets the peak of weakness on crimea. That is so classically wall street. It is so bad and the headlines are terrible and people actually come in and buy. Someone has to be a contrarian. Its a Regional Power thing. We will talk to hans nichols later. Lets look at the front page. Buying Virtual Reality headset maker oculus and its worth at 2 billion. It paid 400 Million Dollars in cash an. It will pay 300 million at the start up creates hit certain milestones and this comes after they paid 19 billion for whats app. And we will speak with David Kirkpatrick in a minute on this deal. We want to point out that the white house is extending the Health Care Enrollment deadline for americans once again, trying to get the last stragglers into sign up for health care. A grace period will be instituted on the honor system. Youhen in doubt, assume will get more time from the government on this thing. Is it a total train wreck . What hasnt been extended . Supporters will say who will remember this in decades. The challenge is getting young, Healthy People to sign up. Thats why this is getting extended. You have to get the Healthy People in to pay for the not so Healthy People. Federalin, the government issuing guidance on the virtual currency. The government says they will tax bitcoin like property but not currency. Generateit will taxable income or losses depending what the investor page. You buy a two dollar cup of bitcoin, that would trigger one dollar in Capital Gains for the coffeemaker and one dollar for the coffee shop. They will make it so hard that nobody will want to use this. Good luck. It takes effect immediately because tax day is coming up on april 15. This means that matt miller have better spends his bitcoins. Could it mean property loss . He got his bitcoins at a much lower price back in december. Lets get to the lead story, the shock trying toon in cash acquire the brainpower of tech futures. David kurt hat trick is the David Kirkpatrick is the author of the facebook effect. What is your first reaction when you heard of this transaction . I dont know if i can say it on the air but i was as stunned as anyone as i was asked to the whatsapp acquisition. Here is a guy who really has gigantic ambitions. This is my First Impression when i met him in 2006 and it remains my strong impression of him, more so every day. I dont think its crazy. The money is a lot but when you think about facebook is a Company Whose goal is to make the world more open and connected, that is the longterm direction that this continues to point. Basis, this isal not a 2 billion transaction. Its a 400 million transaction with a lot of funny money attached . T, if you are making billions trading at 100 p e you have a lot of flexibility to buy things and is probably a smart thing in an industry that changes as quickly as the internet and technology. It is kind of a hedge in a way but it is also a vision for the future which is optimistic which is another characteristic of this extremely unusual leader. We wanted to give you a sense of what the cofounder and ceo of oculus told our brad stone. They sat down about a week ago before the purchase. It is one thing to make a prototype that cannot be moved and another thing to make a few hundred dollars in a massmarket. That you can ship out to the world. We have a number of challenges ahead but we are getting closer. There is a lot of questions about whether Virtual Reality applications can be commercially ball viable beyond gaming. Question,ot even in in my opinion. In reality, there will be future technologies the idea of the feeling that you will be there with someone else without even really knowing in some cases. This is an inevitability in technology. Is soason that oculus important is the first time in Affordable Technology emerge that gives people the opportunity. It is still in a super early phase. The thing to think about is it is a platform that others will build businesses and services on top of. That means that if it continues to fulfill its promise, it is a gigantic opportunity. It is not the same opportunity as running the facebook service, necessarily, but it is a gigantic potential business. Thank you so much. You get lucky when the news rakes. Brett cohen is with us. I saw you nodding your head as David Kirkpatrick talked about the platform concept of oculus, what does that mean . It means developers can build things on top of the platform and it would be a game. Mark zuckerberg is talking about everything from classroom experience to courtside entertainment. To sit atlet fu going home and have somebody at a rangers game with one of these things on watching hockey players in five years . It could be an experience like a 3d Virtual Reality of face time. This is like google glass but in 3d and immersive . Google glass is an augmented reality technology. Oculus is a Virtual Reality. Over the long term, these things can merge. This deal is huge. Facebook is turning the dial to 11 like in spinal tap. You are too young to know that. That . You know everyone knows spinal tap. Stonehenge. Weve got a busy hour with the president speaking g andreg cohn is with us. Dataere will be a lot of out on housing. This is our twitter question of the day that is a serious question. They are on a roll. Coming up, we will show you how the oculus riff works. This is bloomberg surveillance, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. Good morning, everyone. We will bring you the president of the United States speaking in belgium i moment. Right now, we will continue our discussion. Its a 2 billion gamble for facebook. They invested in Virtual Reality and the newest acquisition is oculusvr. It has gamers spellbound with anticipation for its release. Brad stone tested out the latest version of the headset and he tries to find out whether this would become an actual reality for consumers. Right now, i am wearing an rift headset. I am flying into space and siesta roads around me. I am firing my machine gun and its crazy. Maker of the headset is making a big promise that Virtual Reality will finally feel real. If Virtual Reality were perfect and we can have an experience with full body language and full presence, feeling like we are in the same space. Lucky created the headset in his parents garage. That was only the beginning. This was your hobby. Now, you are the cofounder of a company that just earned 75 million and you get to live your passion. Its pretty great and amazing to work with a lot of people who are a lot smarter at what they do and not me. Isone of the people brandonaribe. I was always skeptical because i grew up in the 80s and 90s and there were expect haitians and excitement around it but technology was not rated. Luckily, technology is there. This has thehat potential to change the world. Thats because oculus has a new technology called positional tracking. His virtual character leans forward when he does. It is the Digital World with a new perspective. We are finally able to deliver on the process on the promise of 3d which we could not do before. They have a compass to lot with this version of oculus and it is unlike other vr system. I dont feel nausea. Its like i am there. It has brought out some competition. Sony announced product morpheus. Executives at oculus are not worried. I think people will jump in because we have proved there is a market for vr. I am a sony fan i hope they take it seriously. I hope it makes vr that much bigger and industry. Both companies of many hurdles ahead. It is not clear whether the biggest teaming Software Developers will embrace the technology. Oculusll consumers buyan rift . When its ready and not before. Our guest host is greg cohn his Company Makes burner. Has zuckerberg of facebook said that 40 of peoples time is spent online and 40 of that is spent on social communication. Is this purchase a way to kill two birds with one stone . Absolutely and more of that is mobile. Oculus gives them a mobile platform and he wants facebook everywhere. Is a big important area of investment for them. Many people say that Mark Zuckerberg and facebook was late to the shift to mobile and now they might be too early and making up for lost time and perhaps betting on the wrong direction with Virtual Reality. Is not commercially available yet. I think it is a long bet. You have to look at this over a longterm horizon but there will be more extremes as that will be virtual. I got face time on my iphone. Why do i necessarily need an oculus thing over my head if i want to interact with facebook . I think wearables will be a thing just like google glass. There is discussion about watches and things like that. People want a device that is more comfortable. That ifottom line is adam is sitting at home and face timing me, he will be forced to see a mercedesbenz commercial. Before he gets to talk to me, right . I dont think thats a great experience for users but on the it will happen and facebook has a history of trying to get commercial product embedded into their experience. 75,000 orders thus far and the thing does not exist yet. What does that tell you about the future . Those are developer orders. They are for people who want to build the software or experience the alpha. The scuba mask experience is a little clunky and it is not what the final form will be. It should be like putting on your sunglasses. They will try to get that to a more usable form. Hour,ing up in the next howard ward of gamco will be with us. Onwill get his take bloomberg surveillance, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. In belgium,rs field 50 miles or so west of russells, it is six acres of cemetery in flanders field. 400 are buried there, roughly many missing in action and the president will speak and he is being introduced now and belgium after a tumultuous two days in the hague. Good morning to all of you in europe and in the u. S. We will monitor the president s comments. The bank of japan could decide in midmay at more stimulus is needed after the countrys sales tax is raised next month according to an aide abe tome minister shinsi keep inflation on track. In taiwan, the president said he is willing to meet with protesters who seized the Legislature Last week. Demonstrations grew out of anger over a trade agreement with china and led to violent clashes with holies. A Student Group leading the purchase called a offer insincere and accuse the president of obstructing progress with the opposition party. Three secret Service Agents assigned to protect president obama and asked her them got sent home after a night of drinking. One of the three was found drunk , passed out in the Hotel Hallway on sunday the day before the president arrived. The trio were all members of the Counter AssaultTeam Assigned to the president ial motorcade. This is after columbia . That was not a good one either. It involve locals, as it were. Its like they took a page out of the television shows, the scandals of washington, d c this is our morning mustread. This comes to us from matthew j. Talker at dartmouth greg, you are in the technology business, is it really that specific that you hire a smart immigrant and you hire that many other people . Immigration is a big deal for technology. I was part of white house delegation a year ago and repressed that case. If you think about the olympics, america has great athletes but we dont win all the gold medals. You want the best people on your team whether you are Building Hardware or software company. We will talk about housing and data will show how weather has affected the housing sector and how momentum is starting to cool down. We will be right back with more. Busye president has a travel itinerary in europe. He is at the American Cemetery 50 miles west of brussels in flanders field. Its the acclaimed cemetery from world were one world war i, 400 americans are buried there and the president is making somber comments this morning. This is bloomberg surveillance. We welcome all of you across the world. Lets do a quick data check. Not much going on today. Lets take a look at some of the big losers from yesterday. Lions gate has been making a steady progression lower, falling more than 6. 5 and out trading at its lowest in 10 months. Its newest film divergence underperformed box office expectations. I love it. You did not see it. Carnival is a big loser and customers are hesitant about going on cruises because of a couple of incidents. I was down in mobile, alabama when the ss triumph. Came into port people staggered off the ship. They said never again. They were freaked out. Carnival had to offer some cutrate fares to get people on. It narrowed its annual earnings forecast. You could not pay me to go on a cruise. And slowdown is coming economist suggest more modest gains. Inre is a wide disparity city by city performers. Coco is with us. You are doing the digital thing and whats really going on. Brad huinter, what is the pulse you see right now . The new homecking developments around the country. Everybody is talking about what happened in the last couple of months with new home sales and traffic and conversions and february whether . Buther was a big part of it i think it is a little overblown. What is the trend right now . Sales are going up but there is not as much speed as a month ago. This tic by tic. What is the momentum . Two things are holding back the housing momentum. Prices are up nationally a little more than 10 . Mortgage rates are up about one percent over the past year but also, one of the big engines for the housing recovery has been investors buying singlefamily homes to rent them out and we see less of that now and prices are higher. The big question is whether job growth and Income Growth will pick up. In the do you observe kitchen of homes were couple says should we list the house now or not . Will the supply come on . More people are saying yes especially places where we see price appreciation the last couple of years. No one wants to sell her home at the bottom. Now we are seeing a big increase. , dear, wenot selling are going on a carnival cruise. You can take a home equity line and then go on a carnival cruise. There is this debate whether to rent or buy. Where is that balance now . Because rates are still so low by historical norms, it still looks cheaper to buy. Almost everywhere in the country but not in manhattan. It looks more expensive in manhattan to buy than to rent. What do you see in florida . Miami is extremely strong. Florida is a mixed bag. We are approaching the final stretch of the selling season in florida. I talked to some builders and they say what we are on plan others say there are 20 low plan. It is extremely mixed. Southwest florida is very mixed in southeast florida as much stronger and more consistent. Central florida is a big mix as well so its all over the map. Lets look at california. You say home prices are undervalued. With facebook making a big deal, you have a lot of newly minted billionaires going out there and spending money on new homes. That will keep the market going, isnt it . Nationally, houses or five percent undervalued but california is prices are looking overvalued. Not bubble territory yet. We are far from where we were last decade. Difference in the game now in Silicon Valley versus the last boput . Nowhere near, still very different. In the last decade, prices overvaluedor more compared to fundamentals like incomes and rent. Now in Silicon Valley, rises look five percent or 10 overvalued. Every market really is local. Thatbrothers as noted companies are making more money because it is moving into cities and putting up the holdings. As opposed to homes. Are putting up buildings as opposed to homes. Will we see that in suburbia . I think we are still seeing this resurgence of downtowns. Also seen is a huge surge of multifamily for rent. I think that will start to peek out pretty soon and we will start to see where there is enough supply and huge increases in rents last couple of years will slow down. We talked about how the home prices will slow down. Going back to the question about are atblel,ot prices peak levels. That will have an impact on the builders going forward. Newhome sales are not the bulk of the market, it is really existing home sales. When you get newhome sales data, what do you read into it . Newhome sales right now are about 1 10 of the market. Ormally, it is 6 to 1 construction and the