:00:00. > :00:00.made the statement on her website. Those are the latest headlines from
:00:00. > :00:00.BBC World News. Now for the latest financial news with World Business
:00:00. > :00:21.Report. Could this be the future of gaming?
:00:22. > :00:24.Facebook CEO Mark Zuckerberg thinks so and has just bought the start`up
:00:25. > :00:31.virtual reality company Oculus for $2 billion. Cash is King: The maker
:00:32. > :00:35.of Candy Crush raises $500 million at its market listing in New York
:00:36. > :00:41.valuing the gaming company at over $7 billion.
:00:42. > :00:47.Welcome to World Business Report. I'm Sally Bundock. Also in the
:00:48. > :00:48.programme: Who will benefit most from President Xi Jinping's visit to
:00:49. > :01:00.Europe? We'll get an expert view. "It could change the way we work,
:01:01. > :01:02.play and communicate" ` those are the words of Facebook's chief
:01:03. > :01:05.executive about a technology start`up it's just agreed to buy for
:01:06. > :01:07.$2 billion dollars. Mark Zuckerberg is betting that Oculus, a
:01:08. > :01:10.Californian company which specialises in virtual reality
:01:11. > :01:13.products, has the most innovative tech leading to a new way for people
:01:14. > :01:21.to communicate, learn or be entertained. The start`up's flagship
:01:22. > :01:23.product, the Oculus Rift, is a goggle`like "immersive" headset for
:01:24. > :01:31.video gaming.The designer says he wanted to create a gaming experience
:01:32. > :01:34.like in the film 'The Matrix'. This to my parents garaged and those
:01:35. > :01:37.interested in stereoscopic displays. The problem was that there
:01:38. > :01:43.was nothing that gave me the experience that I wanted. I was sure
:01:44. > :01:47.that somewhere out there that was something that I could buy. The
:01:48. > :01:52.reality is that there is nothing. I set out to change that. Our
:01:53. > :02:05.technology reporter Dave Lee has tried this new gaming experience.
:02:06. > :02:11.What is it like? I have tried it on and it is a fascinating thing. The
:02:12. > :02:16.way it works is it is like goggles over your head and there are two
:02:17. > :02:18.screens one for each eye. You are completely surrounded by this 3`D
:02:19. > :02:22.worlds you can leave you can move your head up and around it if you
:02:23. > :02:27.look down to your legs you can see your virtual legs and you can feel
:02:28. > :02:31.like you're within a game. For the last year, maybe two years, the
:02:32. > :02:38.gaming industry has been very excited about this. One of the man
:02:39. > :02:43.behind this is a guy called John Carmack who was behind the Doom
:02:44. > :02:49.games. There is a lot of hope that this will be the next big step in
:02:50. > :02:57.gaming. A good move on the part of Facebook? When you compare this
:02:58. > :03:04.acquisition which it made for 19 billion, it seems like a steal. That
:03:05. > :03:08.is how ridiculous it is getting? Shareholders will need to be
:03:09. > :03:13.convinced again, when they? The interesting thing here is that it is
:03:14. > :03:17.hardware, things that people go and buy. It is a tangible product,
:03:18. > :03:23.unlike some of the applications that Facebook has. Will it appeal to the
:03:24. > :03:28.masses or is it something that hard`core gamers will want? We have
:03:29. > :03:32.been covering this is a gaming device but the statement by Mark
:03:33. > :03:37.Zuckerberg suggested he was looking at it as a communications device.
:03:38. > :03:40.One demonstration they used to do was in teleconference in. Rather
:03:41. > :03:46.than an awkward WebCam chats that companies have with each other, this
:03:47. > :03:55.could potentially give you an idea of feeling like you are in a room
:03:56. > :04:07.with someone and hopefully this is a more natural chat experience. That
:04:08. > :04:10.is the latest move by Facebook. The Candy Crush Saga is coming to
:04:11. > :04:13.Wall Street. The games developer King has been valued at over $7
:04:14. > :04:16.billion dollars after it raised $500 million listing on the New York
:04:17. > :04:19.Stock Exchange. It sold 22.2 million shares priced at $22.50 per share `
:04:20. > :04:26.the mid`point of the range the firm had initially set. All the attention
:04:27. > :04:29.has some investors asking: Is the market for new shares in a bubble?
:04:30. > :04:39.Michelle Fleury reports from New York.
:04:40. > :04:42.Wall Street has regained its swagger. The stock market is
:04:43. > :04:50.strong, the market to new stocks is on fire. When Candy crushed
:04:51. > :04:56.developer King Entertainments such shelling shares, it will make
:04:57. > :05:02.history. It will be one of Britain's most valuable companies on the
:05:03. > :05:07.Internet. This fund manager says that investors are once again Suite
:05:08. > :05:12.on initial public offerings. Were at 70% more in the number of IPOs this
:05:13. > :05:17.year than last year. And last she was a record. We have not seen
:05:18. > :05:25.records like this is the Internet bubble. Back then insatiable demand
:05:26. > :05:30.for tech stocks put the NASDAQ to its highest level ever, then
:05:31. > :05:33.crashing to earth. It is now looking a lot like that Internet bubble,
:05:34. > :05:40.according to this professor of behavioural finance. We had 80% of
:05:41. > :05:47.IPOs that were loss`making back then. Today we have close to 75% of
:05:48. > :05:52.the most recent IPOs. It is not just a hot market, it is a ultra` hot
:05:53. > :05:57.market if you compare it to the greatest bubble of all time. But the
:05:58. > :06:02.trouble with bubbles, at least a financial kind, is that they are
:06:03. > :06:05.hard to spot until they have burst. At this point, no one can tell if
:06:06. > :06:11.the enthusiasm can you share offerings is a signal of market
:06:12. > :06:14.strength or a danger sign. What is certain is that, lining up behind
:06:15. > :06:22.the maker of Candy crushed, are many other companies hoping to make their
:06:23. > :06:30.stock market debuts soon. Let's move away from the technology news.
:06:31. > :06:34.As France rolls out the red carpet for China's leader President Xi
:06:35. > :06:37.Jinping today, there's a strong sense that we're going to see the
:06:38. > :06:40.signing of some blockbuster business deals. China and France have strong
:06:41. > :06:43.diplomatic ties dating back over 50 years, France being the first
:06:44. > :06:45.Western power to establish full diplomatic relations, paving the way
:06:46. > :06:49.for Beijing's global acceptance. But why is France so important to China?
:06:50. > :06:55.And why has the UK been missed off the list for this European tour? I'm
:06:56. > :07:09.joined by Glen Macguire, Chief Economist, Asia Pacific, ANZ.
:07:10. > :07:13.This day in France, there is a lot of pomp and circumstance surrounding
:07:14. > :07:18.what will happen. What are you expecting in terms of deals? I think
:07:19. > :07:24.there was a lot of symbolism around this trip. It is 50 years since
:07:25. > :07:29.Charles de Gaulle broke ranks with the US and recognised Beijing. In
:07:30. > :07:35.line with some of its symbolism, you may see a number of large contracts
:07:36. > :07:39.signed. This is also reflecting the medium`term growth strategies China
:07:40. > :07:44.has in place. It has already built itself out as a large manufacturer
:07:45. > :07:48.of cheap, low value`added goods. What it did to the next stage of
:07:49. > :07:53.evolution and development is to move up the production possibility
:07:54. > :07:58.frontier to increases value and it will need to import a lot of that is
:07:59. > :08:03.manufacturing technology and capital goods that economies like France
:08:04. > :08:08.produce. They will be some large contracts signed on this trip, both
:08:09. > :08:14.as a result of symbolism and out of economic necessity. What you make of
:08:15. > :08:21.where the Chinese president has chosen to go on this trip `Germany,
:08:22. > :08:25.the Netherlands, France. But not the UK, and yet London wants to be the
:08:26. > :08:31.centre of trade for the Chinese currency. What you make of the
:08:32. > :08:37.choice of destinations? It is important to focus this more on what
:08:38. > :08:39.China needs in terms of its imports at this stage rather than what it
:08:40. > :08:47.needs in terms of its financial development. It is interesting, when
:08:48. > :08:52.you look at the type of goods China needs in this next phase of capital
:08:53. > :08:56.deepening, the principal capital goods exporters are Japan, France,
:08:57. > :09:02.and Germany. Given regional political difficulties, it is not
:09:03. > :09:06.surprising that France only agenda. There is a trade imbalance there
:09:07. > :09:11.already. Whereas Germany has a market penetration of around 5% of
:09:12. > :09:16.Chinese imports, it is much lower for France around 1.3%. I would be
:09:17. > :09:20.focusing more on that goods import dynamic, the types of technology
:09:21. > :09:25.China is meeting at the moment. As we move closer to market
:09:26. > :09:31.liberalisation and deregulation, that is when you will see more trips
:09:32. > :09:41.to the UK and London and the acceleration of other cities around
:09:42. > :09:50.the globe. Thank you very much indeed for your time. Here are the
:09:51. > :10:10.markets frequently. `` very quickly. I will see you soon as we look
:10:11. > :10:29.through the newspapers. Child neglect is now "rife" across
:10:30. > :10:32.the UK according to new research commissioned by a leading charity.
:10:33. > :10:34.Action For Children says one in ten youngsters suffer neglect, which
:10:35. > :10:40.could mean being absent from school, missing health appointments, being
:10:41. > :10:41.left alone or getting insufficient food. Jeremy Cooke