sold stock. just under 25%. has been onor twitter saying they are going to use the proceeds to pay off the national debt. they will have to do it at a discount and a bigger discount than the first time. 75.5 pence. >> we will keep on top of that. jon, you are watching the maker of "candy crushed". "candy -- let's just call it the "candy crush" ipo. 75% of their business. >> i spoke to alex friedman earlier on. everyone around here is saying, why am i not working in tech? facebook is buying something else.

>> virtual-reality could become a reality. a funky pair of goggles. they are like ski goggles and they take you to another world. what about going to your doctor? what about having your meeting via virtual-reality goggles. oculus for $2t billion. we could all have virtual reality in our lives. the next step for computing, they say, after mobile. >> this is a glimpse into the future of things to come. a little bit scary. you look at the futures. >> not that scary. >> there is a lot of data out of the u.s. >> equities have got a nice lift. consumer confidence in the states hitting six-month highs. we have had fed speak overnight as well. mr. bullard speaking out of hong

kong. you will play us some of that later on in the day. he was trying to bat away janet yellen's comments about when the first hike will come. they say it will be the second half of 2015. ukraine seems to be taking a backseat today. obama will make some comments -- he already made some comments with juxtaposition of consequences. let's look at the equity markets, set to open higher. in terms of the news flow, equities are higher. banks, autos, betting companies. those are the three dominant themes on equity markets today. let's have a look at some of the companies that are moving. lloyds bank, this is the company in which the u.k. government has decided to take a second opportunity to sell part of to institutions

and asset managers. they have to do it at a discount, a bigger discount this time than in september. 79.11 is where we are. peugeot saying they will be an active, participating shareholder. ladbroke's down .25%. gaming company, a lot of speculation that they could bid speculation. in terms of currency, a couple of interesting things. let's talk about where the dollar is. we have seen it come a little lower. i want to focus on the pound. we have had some comments from the monetary policy committee. spike a little bit higher.

he spoke and talk about regional communication. rates, shock. the economy is organizing and so too will rates. shock. growth is going quite well. shock. there is nothing shocking in any of the statements. anytime they suggest that interest rates, god forbid, could possibly change to the upside, it looks a lot more dramatic. back to you. >> manus cranny with the latest on the markets. joining us for more on the is the former head of citigroup's investment banking division. great to have you on the program. thank you for joining us on "on 20% growth in non-baking -- i am

sorry, in banking assets. if you combine that with shadow banking, where is the financing going to? it is a state owned enterprise. >> of course, there are the black swans, the things that we do not know about. in china, we kind of understand what is going on. it depends if the government keeps a handle on this. do they have the situation under control? >> when you start to talk about credit risk, in spite of 20% expansion of credit, the level of nonperforming loans is at an all-time low.

it is inconsistent. and we are able to assess why. the lending goes to municipalities and state owned enterprise. it is hard to see what is real and what is not. on the face of it, there is a bubble there. need to be much more wary of china? i hear both sides of the argument. this is going to be a tough time in four or five years, but we cannot afford to be at -- to be exposed to china. >> going back to what we said at the beginning, clearly china's risk is probably priced into the market. what we should be worried about is what is not priced into the market. paradoxically, the u.s. is doing very well. beginning to do what it is supposed to do, which is to substitute china and drive growth forward. that is probably the most unexpected risk.

>> we will talk more about the u.s. and these unexpected risks next. we will also talk about "candy crush" and the ukraine. ♪

>> welcome back. i am francine lacqua here in london. this is "on the move". we just had breaking news on the

sons of rupert murdoch, named nonexecutive cochairman of news corp.. the arm thatfox, does the movies, named james murdoch co-chief operating officer of that division. we are seeing changes at the top. we will bring you price reaction. that thement, we know nonexecutive cochairman of news corp. and we will bring you much more on that and the repercussions. chlanin murdoch -- la resigning from that and they had to appoint a new ceo. it is all linked. move isstock on the lloyds banking group. for more on lloyds, i am joined by a manus cranny. this is a profit for the government. >> it is. look at that stock price. down over five percent.

it is a profit. look at that. they had to discount the price. they got the institutions to come in and did. -- and bid. pence.d at 75.5 we use ate price bloomberg is 61 pence because lloyds paid for insurance on their tactic assets -- on their toxic assets. we know a profit which

that george osborne is going to use to pay down part of the national debt here in the u.k. >> thank you so much. what does it mean for the future? we talked about the government, but does it mean we will have more of these kinds of disposals? the u.k. owned quite a lot of other banking stock as well. i think it is a good step for the government and a good step for you and me. we own these portions of the bank stocks. i think it is a step forward in that respect. us as retaildo for investors? we want to see the dividend restarted. this is one of the best of the past 12 months. it is the leader of the pack in the u.k. institutions want to participate. could it be that there will be a retail offering before the end of 2014? to get that to happen, you would need to see the dividend restarted. we also know from the news this morning that there will be a another 90od for

days before they will do anything else. that will be the debate in the papers. will the government go for a retail offering of lloyds before the end of the year? you go into the election year next year and that is what the government would like to be able to fly the flag and say, we are stepping back from that. downnus cranny on lloyds, some 5.2%. still with us is one of the founding partners at his capital group and has 33 years of financial services experience. great to have you on the program. thank you for sticking around. give us a sense of the banking industry. program, we talk about tech valuations, innovation, luxury. banks arethat the still in troubled or dire europe. not everything has been fixed. >> i actually disagree with that. i am quite bullish about the banking sector in italy and generally in europe. we made a substantial acquisition for us. half of our business is concentrated on the banking sector. why is that? you look at the political will

behind the banking unit. it is an unprecedented achievement. only a year ago, everyone would have thought it impossible. up. really shaped things i do not expect a massive surprise from the qr. i think it will go with almost no sopranos. -- almost. -- almost no surprise . >> will that be a disappointment? for its are preparing big time. there has been a lot of preparation. clearly, we have about 5 billion assets on nonperforming loans where we are servicing those assets. we think there is going to be a big opportunity because banks will finally get rid of a lot of the npl which they have not before. i think this banking union is

going to be a net positive for the system because it will incentivize banks to carry on lending, which has been a problem until now. >> i have some breaking news. city pacific is planning to buy parent assets in a $40 billion deal. &a.much news about mna -- m how is this impacting banks? we talk about the high euro. are the investment banks going to do much better just because there is now a flurry of m&a? >> i think there will be consolidation. this move will change the landscape. i will give you an easy example. a bank like unicredit has a different jurisdiction. it was very difficult to manage.

now they have one jurisdiction. that that havee a competitive advantage over national banks. that could be a trigger for consolidation. the qr the adjustment to will also be a trigger. consolidation in europe has taken place at a high level and i expect more consolidation at the lower level. , we are expecting them to unveil their new plan. our italian banks stronger than investors give them credit for? >> my answer is yes to that. >> is there an italian discount? >> banks are doing what they ought to do. we will havefrom them. urprise fromave no s them. the big banks are fine. >> stay right there. we are going to switch gears. ryan chilcote is on the ground

in moscow. what is the sentiment on the ground? we are still in these negotiations. sanctions and how much pain they will impose. and theow much putin kremlin are concerned about those sanctions, getting kicked out of the g-8. they are doing a good job pretending they are not. putin is meeting to discuss the far east of russia. yesterday, he was at an awards ceremony passing out medals to artists and actors. business as usual. crimea is now part of russia and they have moved on. they hope this whole thing with the west will blow over. the main action today is in ukraine. the imf has just wrapped up their fact-finding mission. we are expecting an announcement today on aid for ukraine. i just got off the phone with the ukrainian economy minister. he told me that there was a lot of understanding from the imf

about the dire economic situation that ukraine is in and there was an understanding that the first tranche needs to be sizable not only to help the country pay off its debt, but to stabilize their economic situation. the finance minister says he expects the imf to give ukraine $15 billion. russia had offered ukraine $15 billion of aid. they have given tree billion dollars of that already. then the politicians changed in kiev and the russians reneged. it is down to the imf and all of the aid that the imf deals with en bloc from the european union off ap the ukraine stave recession. >> i am looking forward to ryan six was of interview today. exclusive interview today. he will be speaking to a network company in russia later on. for his final thoughts, we

talked a little bit about china. talk to me about the story on the emerging markets or possibly the frontier markets. >> i think there is a big difference between emerging markets and frontier markets. clearly, there has been the big emerging market, china, brazil, russia. beneficial of a big inflow for 10 years. and has moved markets changed landscapes. frontier markets are those where not much has happened. difficult markets, a liquid -- illiquid. launched whatly is going to be the first fund which invests in a frontier market on an alternative basis. there is a lot of dispersion between the good countries and the bag countries. the interesting way to go in is not with a directional view on the market as a whole. that would probably go nowhere.

approach, where you can go long on markets which are doing the structural reform otectaybe for tech -- pr your downside risk by going short on the countries which are not doing the reform and countries which would be at risk, so to say. >> is me your favorite frontier market. >> africa is very interesting. kenya,us on nigeria, countries in which things are happening and we can see a trend. >> thank you for joining us today on "on the move". , investors get a taste

of the "candy crush" price. it proves to be more of a saga than a one-hit wonder. ♪

>> welcome back to "on the move ". here inncine lacqua london. let's get on to the tech companies. ing digital is set to begin trading after raising $500 million in its initial public offering. the figure values the company at just over $7 billion. jonathan ferro has the latest.

we are always excited when a big name that everybody knows comes on the market. $7 billion and it is all down to one game. >> we should probably call it the "candy crush" ipo. i will tell you what this company is, terrifically popular. everybody plays it. three quarters comes from one game. apps out of the 10 top come from this company. 1.4 billion daily game plays. the problem, is it a fad? does current popularity translate to a business model that has any kind of longevity? we saw what happened to zynga after their ipo. you also have to think about this. there are significantly lower barriers to entry to enter this market. you can make a game for about $150,000. that is quite low. that means another game could come in to the market and push them off their perch. >> it is different in terms of valuations.

how do valuations compared to the dotcom era? sales.times projected that is not a terrifically-large valuation. i do not think it has mattered. everybody would be talking about whether this was a bubble or not. you look at the nostalgia for 2000. look at the comparison. these were the u.s. companies that raise more than $100 million last year. you can see the price to sales ratio is much lower last year. the average on the first trading -- 65%. in things have changed. what i will say is that people are becoming a bit more conservative about valuations. that is probably a good thing. are going to we talk about some companies this is bigger than. it is remarkable. >> a big difference between now bile devices.

>> how do you value a company like this? >> difficult. donovan pharoah with the latest. speakingay, we will be with a chief executive at 2:30 london time. ♪

>> welcome back to "market movers." i'm francine lacqua from bloomberg's european here in london. we're 30 minutes into the trading day. see how things are shaping up. if you look at the markets, they still holding on to their gains. now, what investors are looking for, are u.s. reports that may add to evidence, improvement in the world's largest economy.

durable good ordered actually increased. this is the picture for euro/dollar. we have been talking quite a lot about euro/dollar. in the past, we have the e.c.b. meeting. 3814.ntly at 1. they have a little bit of leeway but when it comes to 1. 45rks which he was expecting, it is going to be a problem for the e.c.b.. that's when a they will have to act. these are the top headlines. the u.k. government raised 1.2 billion pounds this morning selling a -- 4.2 billion pounds in a share of loids. china's president arrives in paris today to meet with president francois hollande. e meeting is to bridge the

waning trade gap. and in the bloomberg exclusive, he qatar air ways says it will -- and the c.e.o. talked out the all-business class section that will travel to heathrow. we decided to have an aircraft that will be fitted with all business class which we will operate. unfortunately we will not be able to operate from london city because the aircraft is a bit heavy. >> and president obama continues a european tour that has been

dominated by the crisis in the ukraine. hans nichols has been following white house for over a decade. what was the take away from the summit in the hague and what is coming up today? >> the take away from the summit at the hague is no new sanctions . there was harsh rhetoric. obama really throwing some bombs calling russia a regional power but at the end, he said the choice was russia's. >> it is now up to russia to act responsibly and show itself to be once again willing to abide by international rules. >> francine, it wasn't lost on

any of the european leaders gathered in the hage. that whatever sanctions, if they do impose fresh sanctions, that it will hurt the economy in their home countries. obama talked about doing a technical nall sis and when i sboke the dutch prime minister, he said it was the obligation of european politicians to prepare their public for potential economic pain. that is not any assessment the european recovery would be broken. it would have an impact. it is my belief that we as politicians, we then have to go to our voters and tell them because of some of our basic principles, we as the western worldant to adhere to. >> today president obama has a variety of meetings with e.u. officials and cosk the nato commander mr. rasmussen. always going to be a pensive

moment for the president. >> hans nichols following president all day. 013 was another goodyear for the oil enquest. -- oil producer enquest. just give us a sense about your north sea operations. are you comfortable with what you're doing now? can you step up production? how many barrels of oil will be produced? >> our target for this year is 25,000 to 30,000. 12.5% to 15% increase over last year. we had a 16% growth over last year and almost 100% since we started.

we are seeing visibility to get 50,000 based on our new sanction project. 4 billion pounds in investment. >> you're on target. slightly ahead. >> we're on target from 2013 based on the range that we gave. >> what are you doing with the cash you have? is it for acquisitions? is it for upkeeping of what you have currently? >> it is both but mostly reinvesting in the -- to take contingency resources that have yet to be developed and put them into development mode. we have been able to increase our reserves significantly from start-up. last year we had a 52% increase in reserves. primarily because of the project they mentioned that was sanctioned. >> any acquisitions that you're looking at? >> we have done two acquisitions last year. took over the area from -- that is mature field. that we are able to extend life and add more reserves. specifically because we had two

discoveries very close to that field and will be able to put those in the infrastructure. >> you said in november you were looking at things in southeast asia and north africa. are you still looking or has anything actually come through

that you can't tell us about but that you're tracking closely. >> i can't tell you, as you know. we have -- first of all, the north sea is primarily our business. 100% of our production and 90% of our investment this year is in the north sea. we have a similar business model taking assets and developing those. we have assets in malaysia where we took over some old shell acerage and looking for fields and we have a deal in tunisia where we -- ct to have a >> how concerned are you about the political situation? this will have an impact on the way you do business, especially since all the parties here in london said if scotland is independent, they won't have a pound. >> again, the decision on the -- is clearly for the scottish people. i think that will come in september. for our business, clearly the vote for westminster as well as scotland, the oil business is extremely critical. it is the largest industrial business in scotland by far. second largest in the u.k.. i think we will continue to see support in terms of investment. >> you have a contingency plan or are you making one now just in case? i'm surprised at two things actually. i was going to ask you about the contingency plan. we speak to a lot of coast and we haven't really had a voice from the business community saying this is good for their business. >> to be honest, i think an independent scotland and u.k.

will be good for our business. they want to invest significant amounts in the north sea. do we have backup plan? it is plan a and b and c. we will continue investing in the north sea and continue trying to produce more and we are in a unique position to take over assets from larger companies leaving the north sea. we're able to invest if those assets. >> thank you. the c.e.o. of enquest. coming up on "market movers," after heated disputes over the panama canal expansion, we'll ask the c.e.o., one of the partners in the expansion, coming up next.

for the judges to decide. having the financial means to complete the work and to finance it up to the end. >> what happens after that? do you have a timeline? this is again as you're saying having important for the world and world trade. this is increasing the capacity for the panama canal. when do you think it will be finished? >> by the end of 2015.

we don't see any other thing that can avoid that to be -- >> give me a sense of acquisitions. it seems that a lot of valingses are pretty attractive at the moment. the economy is not doing too badly. are you looking at not buying anything? >> we finished with -- the first of january, which was quite an achievement and we are now going to look into other opportunities for our growth. we just got the results of the year which were better than expected from the management. now we finished the year, we and 4 billions of -- and -- we target 2017, we have around 7 billion of turnover in 50 countries. this is what organically we think to grow, but there are

opportunities that we are looking at into the market in order to further grow in certain countries. >> so it is certain countries. regions. >> in the u.s., we think we have a lot of opportunity. it is a country which needs a lot of infrastructure for their growth. they have been investing a lot of money in the past. but it seems that they now need a new deal in investment infrastructure. we are ready to do that. in order to do that better, i think we have to look at some opportunity in growth.

>> do you have an exposure to russia or ukraine? are there any projects that you were thinking of there that you back, if for example, there was a contract coming up. oscow or somewhere else. would you think twice about going into it? >> i don't see particularly why. i think this is the situation that has to be -- as soon as possible. i don't think that russia and the u.s. could continue that struggle. so now of course it is very important. but i think they have to find a solution. come back to a situation by which russia and europe and the u.s. are not any more conflicting themselves. >> so just give me a soverpbes the contracts that are coming up that year. i know you're keen to win them all. is there something that you're close to? we have just been there for - 6 billion dollars. we think we have a good chooverpbes success. >> great to have you on the program. here are some companies on the move for you.

one of the biggest movers on the stoxx 600. the u.k. house builder said first half sales are up 25%. they said they will double to 16 pence a share. a new york judge has thrown out a share to a new york man who said he is entitled to 50% ownership of facebook. and staying with facebook. the company is making a $2 billion bet that virtual reality is the next big thing for computing. into re buying a push virtual hardware. caroline, why get into virtual reality? >> why buy these huge clunky headset? because he wants to be ahead of the game. mark zuckerberg is making a $2 billion bet that virtual reality

is going to become our reality. it is going to become the next big platform, the next big computing platform. remember, it was actually a bit behind in terms of the mobile party. he got to that party late. he had to making those big acquisitions, what's an. -- whatsap. looking to remain ahead of the curve. get into the next big thing. remember google glasses? you have wearable technology coming from samsung in terms of wearable watches . smart watches. he wants the big, clunky, almost sort of ski goggles that you can lose to slice through space. walk a plank over ravines. why not use these to go to doctors appointments. why not have a meeting wearing them. one, it is an opportunity. remember, facebook made some amazing acquisitions.

in fact, 40 over its 10-year history. more than $21 billion. not all of them have been put into facebook. whatsap and instagram remaining independent. if facebook doesn't stand the test of time, certainly some other of his company also. >> are investors pretty pleased about it? >> the share price did lose some of its gains in afterhour trading. a little bit of worry that once again, mark zuckerberg is hurling money at acquisitions. the game developers, the smaller developers, the people enthusiastic about virtual reality will help fund company

oculus to begin with. few people now feeling i don't want to make software for oculus. part of the juggernaut that is facebook. we'll have to watch facebook shares today. many feel this is a good bet, a step ahead of the curve for facebook. it made some vepture capitalists very happy indeed. some pute about $19 billion each into oculis and have been awarded 20-fold. >> thank you so much. caroline hyde brings us all the latest from facebook today. we take a look at the rising price of breakfast foods pound for pound. jonathan ferro digs in and makes all of us jealous. that's next.

>> welcome back to "on the move." i'm francine lacqua here in london. for any self-respecting brit, a full english is breakfast. it is greasy and gorgeous. because of rising food prices, it is also getting more expensive. jonathan ferro explains how from his local greasy spoon. >> can i get a black coffee? you might have heard that inflation in u.k., the u.s. and europe was actually pretty low.

what does that mean for you and i at breakfast time? the price of food has gone one way. up. for think self-respecting brit, this is breakfast. the full english. saturated fat. carbs. salt and caffeine. start with the full english. bacon. ork prices are higher. toast. you have a drought in the u.s., southeast asia, india. putting wheat prices under pressure. panic is something going on in the ukraine. a key producer. then you have coffee. people call this an early morning drink. i call it a necessity. all about one place. brazil, literally the world's biggest producer of the stuff. there is a drought in the

country that is driving the price of this cup a lot higher. the next time they tell you inflation is low, not for the british breakfast. >> really, there is nothing better than the full english. breakfast isn't the only meal breaking the bank. later on, we'll show you how the price of a posh dinner is cruising up. this is the picture for a lot of markets in terms of what we're expecting today. independence sis are up overall. watch out for u.s. data. of course we're expecting reports to add evidence really of improvement of the world's largest economy. coming up, we have an exclusive interview with james bullard of the st. louis fed. we spoke to him in hong kong and we'll have more on his thoughts

on china next. guy johnson and i are back with "the pulse." have some exclusive interviews coming up from russia including the richard branson of russia. ♪

>> the world comes to europe. trade talks bring president obama to brussels and ping to paris. we're live both places. the ay and we speak with c.e.o. >> and virtual reality with a very real price tag. facebook forks out $2 billion or oculus. good morning to our viewers in europe. good evening to those in asia. a very warm welcom