A considerable time. For nassular setback up on commerciallaunch program. Commercial space launch program. , theseconds after launch commercial rocket exploded. We did lose hardware. We lost quite a bit of research hardware, which we will work with the different providers to get those back to the space station. Spacex is also used by nasa. Spending will increase next year by as much as 70 . Here is the chief operating officer. The investments we are making our longterm. These are large and strategic investments. The payoff will take time, but we believe they will provide a Necessary Foundation. Nowacebook said that mobile is back up again. The french drugmaker fantasy has ed its drone the maker the world series is all coming down to a Decisive Game seven. The Kansas City Royals scored seven runs in the second inning and went on to beat the San Francisco giants 100. Game seven is tonight in kansas city. The giants hope to win their third world series in the last five seasons. Now back to facebook. Shares are tumbling in the premarket. It is the most active stock right now. The social Networking Company reported better than estimate thirdquarter earnings. Ey johnson who is a giants fan. That is not a nice thing to wake up to. They were awful. [laughter] lets focus on facebook. I want to talk about anything but the giants. Including facebook. The facebook numbers were really interesting. They announced that a lot of the whatsapp shares are coming on the market soon. It is going to be a big seller on the market. We learned a lot about the Company Including the user base. It is growing at a slower rate. How big can facebook be . Deceleration. We thought they might be getting a little better earlier this year. Growth, while amazing, is growing at just 59 on a yearoveryear basis. A slowdown in sales and user growth. Hasnt their ad platform that they had been rolling out the come more and more effective for advertisers . It is hard to say which is patient push or pull. Either way, we see a lot of things that are positive, not least of which the value of a user. How much revenue they get for each user on the platform come a we can see that that number is picking up. 3. 57, that is growing at little bit more slowly than it has been. We saw this Getting Better and better on a sequential basis. Great growth, but that is not the 41 you saw about increasing value at increasing pace. What about mobile . Are they reaching the saturation point . Not at all. The growth in mobile is spectacular. Youerms of flatter dollars, saw over 1 billion per week coming into facebook. 1. 1 billion in mobile. Im sorry, thats a many users they have. 1. 1 billion users in mobile. 2 billion in mobile revenue. 66 of facebook users were on mobile. From a company that has zero revenues in mobile when they went public, that is amazing growth. Thanks a much. Corey johnson on facebook. Day,e market event of the the fed policy meeting in washington. What they are not going to do. , finally, the end of qe. It is hard to believe we are finally there after three rounds of qe and a twist, the Balance Sheet has gone from 800 million 800 billion to foreign 4. 5 trillion. Now they finally taper. The real question for today is what does janet yellen and what do her colleagues say about the next major decision they have to make and that his Interest Rates . When did they start raising rates . We are not likely to get anything in the statement today. They are still on track for what they say is a tightening in the middle of next year. Sayingmarkets are something different. They dont see an increase until the end of next year. Which is kind of weird. You look at what the fed is telling us themselves, this is from their last meeting. Fedhe end of next year, the rate is at 1. 375 . How do you get to that . They dont want to shock the market by really raising rates a lot. So you back time it. Twitter fivet a basis point move, you have to start in june to get to that 25 basis point move, you have to start in june to get to that. You could start even earlier or you are going to have to go faster to get there. What has changed in the economy to change that forecast . Nothing, really. The Unemployment Rate is falling. Inflation, just below the 2 target. It has gone down a little bit, but did the stable at this point. Everybody was worried about the dollar being an influence. The last two weeks, the dollar is falling again. Gasoline prices, this is the good news for everyone. Yesterday, we were paying 3. 03 per gallon. That is going to be a failed when the economy tailwind to the economy. Headwinds. E a lot of iraq. Europe is one of them there are. Europe is one of them. As a person has ebola. Depending on who gets in power in washington, we could get fights again about sequestration. Other than that, we are still on track for a beginning of the rate rise in the middle of next year. Nothing the fed says today is likely to dissuade anybody from that. Thank you so much. Uncertainty, not to mention europe and ebola and other factors, investors are looking for more professional guidance. Person whoat the manages your mutual fund or retirement account would be better at you. Then you. Hyman has been looking at a study that it is kind of the opposite. It was a survey of swedish Fund Managers. They looked at those Fund Managers and looked at the personal portfolios. ,f you are a financial expert one would think that your personal portfolio would also outperform. They did not necessarily find that to be the case. , thelooked at their peers same background essentially, they found that in their managed funds in their professional lives, they performed pretty well on a monthly basis. They personal portfolios, returned about 0. 9 , which was about the same as the people who they are similar to. Thatis not necessarily new actively managed funds dont necessarily do well. Managerse investment managed similarly in their personal portfolios, they bought the same stuff as in their professional ones, they did better. In addition to that, the top 1 of the population outperformed them in the person or portfolios personal portfolios. There is an argument to be made that the top 1 is not going to benefit from the professional advice. Decided know why they to do this on swedish Portfolio Managers . Think there was a lot of Information Available on these people. Exactly. For makes the base case index funds. Just put your money in index funds as a mom and pop investor. Why pay to see someone who is not giving professional advice . We have seen an explosion in the amount of money in index funds. The one thing i would say from this study is that there looks to be some benefit in these managed funds, to having your money there. Is it because of the professional expertise or because of other factors . Thank you so much. Very interesting study. Coming up, what will next tuesdays election mean for the economy . That is just one of the subjects we will be talking about with roubini. Be sure to catch a big interview later. Will be of america ceo right here on Bloomberg Television on Market Makers. It is a crucial day for u. S. Markets. A single week from the midterm elections. This afternoon, the Federal Reserve has the wrapup of their meeting. With me to look at the u. S. And markets overseas is Nouriel Roubini, the cofounder and chairman of roubini global economics. Also with me is josh wright. Thanks for joining me, guys. Lets start with you, Nouriel Roubini. We seem almost certain that the fed is going to end their qe program. With the recent choppy economic justify a view that Interest Rates are going to take longer to rise . , i think that supposedly by the middle of next year, they will start the hike. But with the uncertainties all over the world, they may wait six weeks. The worst thing they could do to start the left off and then have to abort. Then you will lose credibility. Even if the economy is ready, they will write wait another six weeks. If they say june, it may come july or september. That does not sound like a whole lot of time. What if we are talking about six months . 12 months . Do we get into a danger zone . To wait six months or 12 months, i think it will still be the middle of next year. Of course, if the global headwinds that are coming from the eurozone and japan or china , if theing markets world is affecting the u. S. That makes inflation much worse than the fed is expecting, they have already said that the decision is dependent, went to lift off and how fast. It is not unconditional. I know you have written there is ae you say risk that the fed is focused too much on lowinflation. There has been some controversy in recent weeks. The st. Louis president came out and said that maybe the fed should keep buying assets or be prepared to increase asset purchases. That does not look likely at this point. It seems like that choppiness that we had it bounced right back. That is a testament to some of the other people who have been saying, we have been saying, we have to see a real trend established a four we take further action. Ben bernanke made his name. Make yellen is going to her name on how she pulls the world out of unconventional Monetary Policy and back to conventional Monetary Policy. Would you agree with that . Yes, the key thing for janet yellen is managing the exit from unconventional Monetary Policy, quantitative easing, credit easing. , you cannot rule out that there will be qe for at some point down the line. Maybe we will need qe 4. I dont think that is likely. The question is when you start lifting rates in the future. The key thing is that the data right now, there is not anything more unconditional. All of the actions depend on growth and global headwinds and the dollar. Havent you said that the longer we wait between the end of qe 3 and the beginning of raising Interest Rates that the longer that time period is, the more risk we will see some sort of credit bubble . The real economy justifies a very slow exit. Eventually, asset frothing us can become a cut frothiness can become a credit bubble. [indiscernible] [indiscernible] thiser two years of implies that credit buying a significant two years from now. Even at a baseline scenario. Stay with me, we are going to talk much more about scenarios overseas. Thank you so much for joining us. Up, the most expensive midterm elections ever. Who is spending the most money and where is all that cash coming from . We will be back. You are watching in the loop. Live on Bloomberg Television. s links aank thirdquarter loss after taking a hit. They set aside 1. 1 million to settle investigations of past wrongdoing. The bank named former Goldman Sachs partner to succeed a cfo in may. Posted revenue as Box Office Sales fell nearly 16 , the worst summer since 2006. Regal is exploring strategic alternatives, including a possible sale of the company. And Americans Airline merger with u. S. Airways is facing another major challenge. They are trying to mesh Loyalty Programs together. They are sticking with a miles based programs. Spending on to tickets in the loyalty program. This stuff is really important for these frequent flyers. Bloomberg television is on the markets. Equity futures are mixed as we head toward the opening bell. All eyes will be turning toward the fed statement later this afternoon. Yellen willjanet say about qe. We are on the markets again in 30 minutes. Investorson unnerving is can any economy or market stay in float if those in china and europe falter . Europe is actually seriously scary. China is seriously scary, although it is harder to check track. We are not an island. International independence can be overstated. You would not the u. S. Expect the u. S. To be completely immune. Here we are six years later, still very fragile. Still very fragile. Global economist Nouriel Roubini joining me, the chairman of roubini global economics. Do you think we are still on fragile territory . It is a fragile territory for the Global Economy. There are four engines of the global airplane. The only engine that is really working is the u. S. And united kingdom. The eurozone is falling. There one shot away from deflation. Japan does not look very good. Is going to be below 6 by 2016. We have three engines of Global Growth that are sputtering or stalling while the United States is picking up. The United States can decouple as long as Global Growth does not get worse. The stronger the dollar, the more the transmission to trade. , to your point, we have been buffered in the u. S. With some of the headwinds overseas. You see the biggest down risk as being in europe . Europe looks particularly fragile right now. The ecb should be going into qe. They are not going to do it until next year. Japan should be doing prop up qe on what they have already done and they are not doing it so far. Fiscal policy has become increasingly contractionary in terms of japan. In the eurozone, there is not the fiscal stimulus that mario ahi wants to do. Draghi wants to do. That economic views are bad for the markets. Is inertia on the policy side in europe and japan. Japan has been kind of a nonplayer already. They have been kind of dla for several years doa for several years. Do we need them to be a part of the Global Growth story to get lift off . Abenomics were to fail, that crisis would be in japan. It is the thirdlargest economy in the world after the United States and china. The trade channels metal for asian growth. Growth. R for asian weaknessy, japanese. Nsights a weaker yen weakness in the eurozone means a weaker euro. We are back where everyone tries to stimulate net exports. You have new rounds of quantitative easing. It could lead to tension across the world. Europe is clearly fragile and could go one way or the other. We just had the European Bank stress test over the weekend and they showed that it seems like the Financial System is recapitalized well and that they are far better off than they were six years ago. Is that a positive . A couple of caveats. Those dont control for a risk scenario of outright deflation and inflation at 1 . , deferred tax assets are being used to boost the capital of the banks and that is a problem in measuring the capital. , there isthe eurozone not a problem of credit supply. There is an issue of Credit Demand. If the economy is not going, they are not going to borrow on capital to invest in new capital and into the workers. The problem is not credit supply, but Credit Demand and that depends on aggregate demand and aggregate demand depends on monetary and fiscal stimulus that is missing. You cannot force the horse to drink when you bring it to the water. There is not a credit crunch problem. I listen to someone like you, people Pay Attention to what you say. I was making a joke earlier that if Nouriel Roubini sneezes, it is a headline. Who do you Pay Attention to . As you are outlining for me your view of the Global Economy, who do you Pay Attention to . Who do you think has it right on policy . Listen and every lots of those whopecially agree with me. [laughter] i spend time traveling around the world throughout many continents. More than listening to other people, you want to listen to the data and what is happening in the different economies, spending time in the different countries. If i had your schedule, i would have all gray hair. Your schedule is amazing and also quite brutal. You are in high demand. People want to know what you will say. Thehe u. S. , what about political situation . You have sounded off on what is going on in congress. It seems sexy gop is going to win control of the senate and we a Republican Congress and a democratic white house. Will that be a catalyst at all for growth . I think it is going to make things worse. More divided government will gridlock. Re reform, corporate taxes, energy policy, the debt ceiling, entitlement reform, we need lots of other structural reform. None of these things are going to happen because there is going to be even more division. If republicans when the senate, they are going to posture even more and the next two years will result in gridlock and fundamental issues. , the longere wait growth is going to be negatively affected. We have a long list of Structural Reforms in the United States and we have not done any of them for the last decade. If there is one you could pick out of the laundry list, what would it be that you think could have the biggest impact . I would say two things. Immigration reform is key. Corporate tax reform as well. Those are them the most important two. You travel, you have your home here in the u. S. Ine you soured at all living the u. S. . Do you feel like the country is going in the wrong direction . We are doing better economically. We have the cleanest shirt and the laundry bag. Thane much better off europe, japan, even many emerging markets. In absolute terms, this political gridlock is going to affect economic decisions and economic reforms. Are you fed up . I think that there is really