conference, where former president bill clinton is holding court. he joins us for a live interview. scarlet: an exclusive interview with chevron ceo john watson. mark: and it is what the auto industry doesn't want you to know. how high are the margins on rucks? mark: good afternoon, and welcome to bloomberg market day. i am mark crumpton, here with scarlet fu. scarlet: let's look at the markets. stocks opened higher and it never looked back. optimism that greece will reach a deal with creditors and germany's position is softening a little bit.

feels like we have hit the 11th hour many times the past couple weeks. for the s&p 500 and the dow, this is the biggest gain in a month. looking at treasuries, lots of supply this week. $21 billion of 10-year notes today. we have expectations that the retail sales report tomorrow will be strong. selling ahead of that. the yield on the 10-year moving up towards 2.5%. they are mimicking the selloff as well. bunds look at the yen, strengthening, gaining versus the dollar after the boj governor says further declines are unlikely because the inflation-adjusted rate has come a long way. mark: looking at global markets on my screen, look at all that green on the screen on this wednesday. a lot of optimism that, as the scarlet mentioned, something can be worked out for greece. scarlet: risk on.

mark: absolutely. germany is denying that he will accept less than full compliance by greece on its commitments to reach a deal on resuming bailout aid. bloomberg news reported that angela merkel's government may he satisfy for now that if greece were to come up with one economic reform. the same reports that germany would still want in greece to come up with a full package of reforms. scarlet: the ecb is boosting the size of the lifeline it will offer to greek banks. it will get a next her $2.5 billion in emergency cash, the biggest increase since february. sendingesident obama is 450 additional u.s. troops to train iraqi forces in anbar province. the white house says the troops will not be in a combat role. the u.s. is also sending more military equipment to iraq. house speaker john boehner says

he supports the plan but still has questions. boehner: it is a step in the right direction, but as the president admitted the other day, he has no strategy to win this is another tactical move. . again, i support the tactical move the president is taking, but where is the overarching strategy to deal with the largest state sponsor of terror in the region, iran, and to deal with isil and all of their related groups? mark: there are 3000 u.s. troops in iraq. months of airstrikes have not stopped the islamic state from capturing large chunks of iraqi territory. scarlet: federal prosecutors have prosecuted libor for doing business with sanctioned countries. news is reporting that the department of justice will look into whether financial institutions are sharing information properly or improperly in this case.

this comes after the government successfully went after wall street's illegal practices in foreign currencies. trainthe engineer of that in the fatal amtrak crash was not using his phone just before the derailment. but they still don't know why the train was going more than twice the speed limit when it left of the tracks near philadelphia. eight people were killed, over 200 others were injured. scarlet: marriott international says it will offer guests access to netflix on tvs in its guestrooms. people can sign into their existing accounts on internet-connected televisions. they can also sign up for new subscriptions. netflix is available at six marriott properties with six more launching this summer. shares of netflix are surging by the most since april. a ubs analyst raised its price target to $722 from 600. shareholders approved a proposal to include the number of shares

outstanding. that could pave the way for a long-awaited stock split. shares of johnson controls are rising on news the industrial parts company is considering a breakup. johnson controls says it is thinking of spinning off its auto-parts unit. that would allow the company to focus on other divisions, such as its commercial air conditioning business. auto parts are worth more than half the company's $22 billion in revenue last year. -random houseuin says a copy of the upcoming "50 shades of grey" sequel has been stolen. publication is a week away. police in southern england are investigating the theft of the book from which retails the erotic adventures of the trilogy from the point of view of the billionaire christian grey. mark: wow. saw the movie. scarlet: mark actually saw the movie. mark: yes, i did. liu is live with

the former president of the united states and the founder of the clinton foundation, bill clinton. betty: mr. president, thank you for inviting us to cgi this year. events.een to many cgi i was at your annual meeting in september. you do highlight, as we have seen, some of the great work of the clinton global initiative around the world, helping millions of people out of poverty and fighting childhood obesity and many, many other issues. i want to get to some of the commitments, mr. president, you are excited to talk about today. but i also want to talk about some of the topics that have overshadowed some of the good work that cgi has done. mr. clinton: have at it. [laughter] betty: we know you have 200,000-plus sponsors that it since 2001.i a few of them have begun to reassess their sponsorship of the clinton global initiative. exxon mobil said they are not i thisto sponsor cg

year. is this because of the funding controversy? mr. clinton: well, they don't want to be involved in politics. there is never been a foundation with a political person involved like we are in that is nonpolitical. i've had a george bush here, mitt romney, john mccain and sarah palin came. i have all of these -- rupert murdoch and his foundation have given money to us, along with mayor bloomberg. we just solve problems. but there are people who just on't like that dress -- bad press, and you cannot be involved in modern american politics without someone attacking you could the fact that there are so many channels like bloomberg and social media means that if the summary wants to go negative, it is a tribute

to my wife that it all happens now. [laughter] and we have got all this social media and the different ways of think in the, i end, the foundation will stand and fall on the work it does. you are right, we have more than 300,000 contributors and 90%-plus of them have given $100 or less. we do work all over the world and in america, and what is really -- i think a lot of the ss is not used to republicans and democrats working together on things that have nothing to do with politics. in a political season if you are covering a political story, you can't possibly imagine anything else would enter anyone's mind. the truth is, most of us never think about it. betty: but this year you don't have any republicans at cgi.

mr. clinton: well, we have three mayors and a county official. betty: but on a national -- mr. clinton: you've got senator whom i like very much, lindsey graham, jumping for president, is running for president, jumping on hillary, ad he wants -- once wrote tribute to her in one of the magazines when she was being honored, saying she was a national treasure. everybody is sort of changing their opinion now. [laughter] it is just politics and you can't take it seriously but we have to keep working through it. 90% of what anybody complain about we know about when she ran and no one went after the foundation, at least not to this extent. we will just see, but i am happy --answer the questions and

but i think -- and have disclosure, but it all be a two-way street, this disclosure. betty: and i read between the lines on that, for sure. [laughter] but, mr. president, you did try to put some of the fire to rest when you wrote and nearly 1200-word letter -- mr. clinton: tw i did. betty: to your supporters. he said he would continue to look for ways to improve the reporting system so we can operate as transparently as possible on a goal we have been committed to from day one. why don't you think that has put to rest some of these issues? mr. clinton: well, it is not in the interest of my critics to put it to rest. but do i have the most comprehensive disclosure of any presidential foundation? yes. is our disclosure more extensive than most private foundations?

yes, they are. has nothing to do with politics. has anybody proved we did anything objectionable? no. have we done good things with this money? yes. one of my republican supporters who has not been subjected to public criticism called me and said, "here is the message i get from this coverage. if i put my money in a tax shelter in the cayman islands and don't pay taxes, i'm a great man. if i give money to one of these black box to minis where you never have to real contributors, i never get grief. if i give money to you to help poor people, something is wrong with me." [laughter] he said, "i just don't agree with that." i am proud of the work we do and people support it because they like what we do. that's what i think. [applause] betty: but knowing what you know you said "weg that

have never done anything knowingly inappropriate at cgi --" sayclinton: but let me just this -- we started with the disclosure and evident, which i was fine with. i don't have any problem with it at all. years,s also -- for many two or three years in a row it was the fastest-growing foundation in the world. it wasn't like every day we were working on the assumption that one day hillary would run for president and then we would be treated with the presumption of wrongdoing. --refore, we should divulge i've already spent more money than i ever intended to on central staffing to do all this compliance stuff and everything. i started this foundation with way under 10% overhead. i wanted to take good people -- i wanted to pick good people to

run the initiatives and push all the money out the door to the people we were trying to help. we are still under 10%, but not as much as i would like, although a lot of foundations have more. i just think we should be as small as we can. so i will give you an example. there was a lot of brouhaha in the beginning because our -- wetion did not report said we would report contributions from foreign governments, which i think we should. he gotn they said, oh, $500,000 from algeria at the very time they were lobbying the state department in 2010. facts are accurate, but if you put them back to back they are incredibly misleading. here's why. i never considered that the algerians gave me the money. on january 10, 2010, when the

haiti earthquake occurred, i was a united nations special envoy for haiti. and it was total chaos. remember thewill coverage. the major hospital was broken and operations were taking place outside on the grass out night -- at night with a flashlight and vodka being used for amputations, for anesthesia and the anesthetic. we put out the word that if anyone wanted to send me money, i would forward it on quickly to haiti, where it would do the most good and take zero overhead. that is a big issue with me, the overhead that ngos take. i wouldn't do it, and we still do that. and i raise money for haiti and invested there. that was just an accident.

to me it was a pass-through. i didn't think about it. betty: so you would do that again? mr. clinton: take the money from algeria against? today's -- two days after the earthquake with people still buried under the rubble, there are few countries in the world i would not accept for help to haiti, because they were not giving it to me, they were giving it to the u" a nader to put these people back in a position to live again, and i would -- you and coordinator to put these people back into position to live again, and i would do it. [applause] betty: is there anything comes for president -- mr. clinton: i do not hesitate is a that i don't blame whoever saw that reported -- betty: for making the connection? mr. clinton: for asking a question about it, because they would have no way of knowing the context. i think it was the right thing to do. betty: but knowing some of the optics now, is there anything you would effectively with the foundation?

mr. clinton: i'm sure, but i can't -- when i tried to do -- there had been a lot of money we do,'t take, things i didn't one of two places we didn't go into, because we have a strict no corruption policy in our own operations everywhere. but by and large, i think what is really at issue here and what bothers --, for example, if you are a political reporter, or a business reporter, you tend to see the world through that lens. and it is hard to imagine that there are businesses and individuals that contribute money for things that have nothing to do with politics. i was in politics a long time, i get that. the truth is, most of us have big parts of our lives that don't have anything to do with politics. and that is why i have tried to

do these global initiative meetings. so i don't think that it is a bad thing that you have diverse businesses and philanthropists and ngo's and governments working together to solve problems. i think that is a good thing. model and a lot of what i do in my own foundation is based on innovative partnerships. say, well, on these things we are done. i don't even know if hillary is going to run for president again. and neither did they. but if you think all that matters is politics and everybody is running all the time, they always know what they are going to do, then you should reengineer yourself from -- and imagine what it is going to be like on this day, and we should walk around on tv shows -- on then toes from now till

and not think about the mission. i think that is an ever. there may be a thing or two that i would change, but the basic .dea i think is right i still believe it is the right thing to do to solve as many problems as possible through cooperative networks that are inclusive across political party lines and business and government and nongovernmental group lines. betty: let's talk about some of the work that has been done at cgi america. tell me about the community that you think will have the biggest impact that has been made so far at cgi america. themlinton: well, a lot of -- i am going to answer that, git basically at all these c events there are commitments that either fall into discrete more than 90% of

them represent partnerships with diverse people going. .hey have a chance to grow some of them that aren't really exciting art those that have a check -- that are really exciting are those that have a chance to grow. there was a fascinating commitment involving financial institutions putting in developmental funds to bring clean energy jobs to native americans. they are still the course group of america -- poorest group of americans, native americans who live on tribal lands that don't have casinos. that had a chance to really blow up. there are several like that. the biggest one in terms of dollars and jobs by far is the continuation of the original $10 billion a minute by -- original $10 billion commitment by the market federation of teachers,

afl-cio -- betty: infrastructure. mr. clinton: to retrofit buildings. it was going so well -- and this just happened in a conversation. trumka, i saidnt i am on the president's council on retrofitting buildings, and a lot of these businesses are not doing it, and this is good money could you can get good return. money.e all this pension you can create more construction jobs, and we can fight climate change, we can do while this could he said, "go to the building trades." weingarten had an interesting -- partly because there is a commitment this year where they said they would build affordable housing for teachers in san francisco, where housing costs are very high, and they will have lower utility bills because they will be greener. the first $5.6 billion of this

$10 billion commitment has been deployed and spent, and they created 50,000 jobs. that is a lot of jobs. betty: it is amazing with infrastructure, everyone can agree we need better infrastructure. we just don't agree on how exactly we are going to fund it and where we will deploy it. mr. clinton: so i figured if i could start with almost any substantial pension fund, they would have aborted that would that that you -- a board would agree that you need a modest amount that is low risk thomas steady return. and if it also happens to benefit your members, that is more funds coming into the pension fund. i thought it was a win-win deal. the thing to upped $14 billion in their building housing developments and doing all this amazing -- it all started with a simple idea. ,here was -- when we opened cgi

there was a young woman who is working with a group of religious, faith-based groups across all faces -- all faiths, trying to get them to do the same kinds of investments. willie sutton said he robbed banks because that is where the money was. if you look at where the money is, what people are looking for, prudent investments that have a return but also advance the social good -- betty: and you can see it. mr. clinton: yeah, there was a lot there. betty: what happens, though, to the foundation's work -- as i mentioned, the great work the foundation has done -- you mentioned many times that this year is different because your wife is running for president. what happens if she does in fact when the election and enters the white house? happens to the foundation's work? what happens to you at the foundation? [laughter]

mr. clinton: well, i don't know. i will be almost grown by then. [laughter] i will give you my serious answer is this. i believe that if you have been and the current president of either party asks you to do anything, if in good conscience you can do it, you should do it. now, that is the truth. quite apart from our being husband-and-wife. that will be not an easy decision, should she be elected president. she will have to decide what is my best use. up being around to buck her everyone. think itns, and i would be a good thing for america if she did win -- [applause] betty: you mean, it will have to

be a hard decision made on the foundation. mr. clinton: we will have to talk about it. i don't know. what i have tried to do -- i always took the money people gave us and put it right into the work. so my foundation, which is helping soon over 100,000 farmers in africa, we have separated in 2010 the health work, which is what gets most of the government -- betty: right. mr. clinton: it will run regardless. it has an independent board, really good board. it is fine. the work we do with small entrepreneurs in haiti, mexico, colombia, and peru, that will be fine. donna shalala came in to become president of the foundation to make sure that we were in really good shape, if it is appropriate if ie to leave altogether

need to. and at chelsea is there. i think the foundation will be just fine. but i am determined to stay at it as long as i can to make sure we are in the best possible shape, and the reason i finally went out and tried to raise the endowment is i thought there riding onny lives the work of both the foundation and the health access initiative, which is separate from the global initiative, where we get everybody else to do it, that it would be irresponsible for me not to have an endowment. before that, president bush opened his library, $250 million endowment, president carter has like a $500 million endowment. he has been working on it 20 years longer. i never cared if i had one at all, if we were doing good work. people with supported. if we weren't, fine. betty: but now you have to think about this. mr. clinton: well, i decided in

the end that in the interest -- including might daughter, if she decides to keep doing this, they may not be able to raise the money to do the work. i want a modest endowment. it is not responsible for something that has become as big as this is with no endowment. betty: would you still give paid speeches? mr. clinton: what i want -- what i what -- would i what? betty: give speeches if your wife is in the white house? mr. clinton: no. i would still give speeches on the subjects i'm interested in, and i really enjoy those things. [laughter] i get to meet with smart people. i met with oracle's major investors. god, they were fascinating. i learned so much. if anybody told me in 2001 that people would still want me to come talk, i would be stunned.

[laughter] really, i did. i think it is because i spent a couple hours a day studying what is going on in the world, and i don't just tell war stories. i don't talk about what happened when i was president unless someone asks me a specific question. i think people want to live in the present and look to the future. i went through all the records and getting ready, this little dry run on the foundation has prepped me up. [laughter] i have done more appearances for other people that i have given paid speeches and i give 10% of my paid speeches from a little more, actually, have gone to the foundation. hillary gave even more of her paid speeches to the foundation. and then i have given more events than that i have done for other people already where i just speak, or go to a

fundraiser or do some thing else. this --ad to pull all the events for other people since the day i left office. immensely rewarding. i never thought my foundation -- i never thought it would get as big as it is, because it is a doing foundation, not a funding foundation. the gates foundation has helped us a lot. betty: the races is upping my $2 billion, is that right -- you raised something like $2 billion, is that right? mr. clinton: but we have also directed a lot of money entrusted, particularly in health care. example, something not very well known in america, small, funded primarily by a small tax on every airline ticket outside of france. it was set up -- the first people the french talked to about it were in my living room

after they decided to do this, but the leader, who was foreign inister and president ch=-- irac'sent ch government. it does one thing only -- they buy medicine for poor people in poor countries who otherwise don't have it. they established a fund. it is crowdfunding in a clever way. they asked us if we would buy the second line of aids medicine, 10% of the people in need who have aids and the old medicine doesn't work anymore, and children's medicine, because they knew we had driven the price is down -- prices down to the lowest level in the world. the group did that. they did a good job. they got a little administered a fee for doing this. they directed a lot more money

than was actually there. -- when wewas true started the clinton foundation, it was to deal with aids. and i got the canadian and the irish government to promise before there was any money going into this that they would spend $20 million a year for five years each in countries they could pick but we would say we could operate there. i said i don't want to touch the money, i want you to give them the money to build their ability to do it. betty: mr. president, before we go, one last question. our bloomberg politics poll just a few weeks ago found that if hillary clinton were to be elected to the white house, 83% of those voters polled said it was mostly good for her to turn to you as a chief advisor. mr. clinton: well, that's nice. [laughter] i appreciate that. betty: what would you advise

her? all,linton: well, first of if she gets elected president, she will make good decisions. she works hard, she is on top of things, and she will consult widely, she will be inclusive, which we need. the whole world today is suffering from lack of inclusive economics and inclusive politics, inclusive social policy. advise her?ld i betty: what would you advise her on? where could he -- where could you be valuable to her? mr. clinton: if there's anybody who knows more on earth about what subjects she should listen to -- [laughter] [applause]

but look, let's take this seriously. in the years i had the honor ofving, we had 20 millionaires and billionaires and record numbers of new jobs. shared.prosperity was a gaping hole has opened up again between productivity growth in the fact that it is not widely shared anymore. we need to get back to that, but we need to get back to that with a strategy that is innovative it isowth-oriented, and different than what it was in the 1990's. the economy is different, that technology is different, the relationship to technology and job growth is somewhat different. and yet there are all these new opportunities that did not exist then. so i hope i will be asked to mainsupport her determination, which is to try to give the country a middle-class again and give poor

people a chance to work into it and make it a dynamic, again, inclusive society. it is really important. the good news about this technological revolution is we have more options than ever before. the bad news is if we are not careful, we get siloed. we get isolated from one another. one of the things that is heartbreaking about all of these horrible instances where these young people have been killed by encounters with law enforcement is that it is revealed it is almost total lack of trust in neighborhood after neighborhood after neighborhood in america. succeed, we have got to be able to create a sense of inclusion where people at least feel safe in their basic functions and safe expressing their opinions, safety disagree,

safe to argue -- safe to disagree, safe to argue. i think she will do that, and if i can help, i would like to. but believe me, she has got better judgment about the best use of me that anybody else, i think it she has been stuck with it for 40 years. on that note, i want to thank mr. president bill clinton for joining me here on stage and appreciate you for allowing me to join the stage here at cgi america. thank you. mr. clinton: thank you. [applause] u.s. been watching betty liu speak with former president bill clinton, founder of the clinton foundation, at the clinton global initiative's annual america event. mark: joining us with more is politics managing editor mark halperin, also the cohost of "with all due respect." i was struck by something the former president said. he said there was a gaping hole between productivity and the fact that it is not widely

shared. was that a hint of an indictment of the current administration's policies? mark h.: statistics don't lie and even president obama would tell you that is a problem. but there are statistics, as this very proud former president points out, that suggests he made progress on that and the country made progress on that during his time in office. but the long-term trend including during the last six years of this president have not been good on that point and it is a point that both clintons have worked on from back in arkansas. scarlet: he buttoned that up by saying that she would be inclusive, his wife, hillary clinton, if she becomes president, on economics and social policy and the rest. what stuck out to you as were listening to the former president speak? mark h.: privately, he has been quite upset with the way the foundation's activities have been denounced. there is no doubt that the opponents, including

some in the media but definitely those on the right, have gone too far in denouncing the activities of the foundation, calling it a slush fund for them personally, suggesting that all of it is to benefit them in their political life as opposed to helping people around the world. i think he has had time to work through it psychologically, emotionally, and gave a reason and measured defense of how the foundation operates, although did not address some of the specifics out there as questions. not havebut they could been taken by surprise at this, the attack on the foundation, the attack on their works. we are talking about ramping up towards the presidential campaign season. this was bound to come up. mark h.: the clintons are very sophisticated about a lot of things. they have not always been that sophisticated about how the media works. although they don't have t -- don't underestimate their opponents can i think they felt -- you saw that in his room marks today -- that the nation does such good -- the foundation does such good work around the world that whatever happened

carelessly on the sidelines, that would all be jumped by the quality of work that the -- trumped by the quality of work that the foundation does. they underestimated that. scarlet: he made a comment specifically about how they didn't know if hillary clinton was going to be running for office. that seems disingenuous. that was the resumption. mark h.: i'm not so sure she was dead set at the time. i take him at his word. we see not just in the activities of the foundation but other choices they made as a couple that she was at least not so certain she would run that she would do everything you would do if you wanted to minimize controversy as a candidate. foundationrk, the seems to have weathered the storm. of course, going forward, something were to have come out -- but it seems like they have been able to withstand this. will that continue going forward, as you just mentioned the good work of the foundation, all else -- trump all else?

mark h.: unfortunately for secretary clinton, it will not be seen as the scraping she participated in in an unambiguous way. -- this a great thing she participated in in an unending list way. -- unambiguous way. the foundation will continue. president clinton talked about that. chelsea is an off there. -- involved there. but it is clear that some donors will be less likely to give and some activities will have to be curtailed, and if she is elected, they will have to make a decision about what they do with the overall foundation. scarlet: you and your coworker john heilemann have spoken to so many politicians as they have .un for political office we talked about how jeb bush did not have a ready response to charges on his brother's administration. this bill clinton have already answer?

mark h.: sometimes he has multiple answers. he is a very still the guy and guy andthat -- skilled you saw that in his answers. compelling and convincing and in some cases incomplete, but bill clinton as a great lawyer and brilliant guy understands that when you are asked a question you give the best answer you can and when you are on the stage, you are in charge of the facts and bring them to bear any way you wish. i did not hear anything demonstrably false but there were things that were incomplete. mark c.: i believe he said years ago that in life some of our deepest wounds are self-inflicted. mark halperin, cohost of "with all due respect," monday through friday. thank you so much. mark h.: thank you both. mark c.: president obama will send 450 more troops to iraq to bolster the fight against the islamic state. they will be training and advising iraqi forces and will not take on a direct combat role.

press secretary josh earnest discuss the decision at today's white house briefing. the president and his team are confident that for now, 450 troops are -- additional military personnel are what is necessary to fulfill this expanded advise and assist training mission to the airbase. but what is also true is the president is going to continue to push his national security team to continually evaluate the strategy. scarlet: our chief washington correspondent peter cook has more on this decision and, of course, the reaction to it. to what extent is this a change in strategy, or is it something else entirely? a tweaking of strategy, and expansion of their existing strategy, as you just heard from josh earnest. it will allow them to expand from four to five the number of bases being used to train iraqi forces, and the 450 additional troops will specifically focus

on the western part of iraq, anbar province, where the islamic state has taken over and the specific goal is to reverse that, not only iraqi security forces, but importantly, sunni tribes in that part of iraq, getting them to join the fight, joining alongside the shiite-led iraqi government, a key focus of the administration, wonder they hope will take root with this additional training. peter, is the white house ruling out a bigger role for these troops? now, mark, they are. they are adamant that these troops will not be, as the other u.s. troops, the 3000 or so that are there right now, will not be in a combat mission. they will not be leading the fight. they will be training and advising the iraqis. they are not ruling out expansion in the future but it is not happening now and will not be, as we heard from josh earnest a short time ago, a major u.s. ground forces in iraq anytime soon. going forward

is starters on the ground. will the president considered allowing u.s. to get that far in the fight that they will provide more help to airstrikes, for example? that decision has not been made with this announcement today. scarlet: all right, a tweak, not a surge. thank you so much, peter cook, chief ashington correspondent. mark: all right, i am out of here. fantastic to hear from the former president. we are getting comments on our twitter site and bloomberg.com. if you missed it, trust me, you'll see it again. scarlet: go to bloomberg.com. he was comfortable talking to her and pivoting from subject to subject. mark: one of our producers had the best light -- "i will be almost fully grown by then," referring to what he will do in the future with mrs. clinton as president. scarlet: we have much more coming up to me go inside

chevron. an exclusive interview with ceo john watson about the shale business in the u.s. alix steel can't contain herself, she is so excited. ♪

welcome back to the bloomberg market day. i have alix steel with me here, which means it is time to check on commodities and how they settled in trading. let's start with soft commodities for a change. the usda crop report came out. how often does this come out? alix: i think it is once a month. don't quote me. this is what was really cool about the wheat market.

the expectation heading into this report is that we would see issues because we had so much rain in areas like nebraska as well as texas. of any month since 1895. instead, what happened is the usda came out and increased its outlook for inventories here in the u.s. surprising that production in the u.s. will be more than estimated. that is why you saw that which sought with prices. scarlet: i like that. i like bringing in wheat to the picture. alix: it is important. it.ll need it. -- eat scarlet: and russia makes a lot of it so it ties in with geopolitics. crude is extending yesterdays rally after the latest inventory report come up 5.4%. that is a pretty big move. and over $51 a barrel. at the margins you had a big stock drop.

a good indicator of demand. but you had product builds. we have been seeing this week over week, distillate inventories increasing. refiners can make the product. risk are not using it, the is that that will go into a product to glut in the market and refiners are like, hey, my margins stink. the inventories are not as bad for products as they are for actual crude. there is more storage capability so we are not in a gl yet. ut it is a long-term concern because if refineries stop working, they literally don't use crude and there will be a glut in the crude market. , a technical-land term you only here in the commodities world. joining me in the next hour -- meantime, we will stick with oil because chevron, the second-biggest oil producer in the u.s., is active in more than 180 countries, pumping him as 2.6 million barrels of oil every day.

ceo john watson faces tough decisions about oil prices and political risks cap and the dual threat of independent crackers -- independent frackers on one hand and renewables like solar on the other. erik schatzker sat down with him to find out what makes oil stand out from the rest. john: more oil and gas production-weighted relative to downstream chemicals good that is a differentiator. the geography is little different than some of our competitors, both in the downstream and where we have chosen to invest. , fore under weighted example, in russia and the middle east, relative to some competitors. we have had to make choices based on the investment returns that we see. in chosen not to be a part of southern iraq, even though we have done a lot of work to try to be prepared to participate. we did not see the economic returns. erik: it seemed when oil was at $100 that the independents had

the best business model. we are living in a different time and different place now, several months later. was big oil built for price environments like this? ifn in the industry for 35 years and we've seen the price drop five times. we have been there before. economic conditions can change, costs can change. you have to have a portfolio of opportunities with different physical terms, different risks associated with them, political, geographic, and other risks that we encounter. you have to have options because you know the pace of projects won't always be exactly what you expect. you have to have that balance in our portfolio, and we have the advantage to be able to do that. perhaps we have a different view of the business as opposed to just short-term view of the u.s. business, which has always been a blessing for this country. but it is not the only thing that is going to be needed to bring energy to the world population. erik: elaborate on that last

point. john: well, the shale business has been tremendous for this country, and the independents have largely fueled that growth and have accomplished great things. but if you look at the production of oil, it is 4.5 million barrels a day. the world market for oil and liquids is 93 million barrels a day. it is interesting after the success in the united states, the expectation was that this will happen everywhere. it hasn't worked out that way. there have been fewer places , the rocks have worked and the economic system is in place. the world is going to need lots of energy. it is going to need shale production, but it is also going to need deep water and other forms of oil and gas in order to meet the needs in the marketplace. scarlet: we take you inside chevron's biggest project tomorrow night on "inside chevron." when will this

change? we discussed.

markets are seeing a lot of green today, especially in equities. we will head over to julie hyman for what is driving prices higher. julie: we have the markets higher even before we got the headlines out from greece today, or regarding greece, i should say, that germany was expressing willingness to compromise and negotiate to some degree. we saw the stocks rise to the highest in the session and hold onto those for the rest of the day. the s&p and the dow are breaking a losing streak for the dow. it was four days. for the s&p it was three. both of them up to their highest in more than a month. in terms of what is driving it, i look at the s&p -- technology, financials, energy are the best-performing groups, although all 10 groups in the s&p 500 are

higher right now. broad-based rally that we are seeing. thank you so much, julie hyman, joining us from the breaking news desk. 330 billion dollars, according to bloomberg intelligence -- that is how much money could flow into china's stock market domestic adds attorneys to the index. it prompted the shanghai cop as it to fall as. a bloombergow is reported. they say it will happen, just not now. what is the biggest obstacle? >> a lot of people are honing in on one thing, investment quotas. in a free-market market economy there won't be any kind of quotas, and in the u.s. you can put as much money as you want, but in china they are trying to control that. one example is the hong kong shanghai that hong kong-shanghai

link. it sounds like a light that the outbound flows are limited by and over the past seven months it has been open it has hit the maximum. they say no, you can't treat anymore. limitations,a, these, again and again. once upon a time people said that currency convertibility is a huge obstacle. inis worth noting that msci the past has added emerging markets where you don't have full convertibility. you have some level but investors don't have full access to the money markets. that is something that is put on the side burner for now. that,in addition to another thing people are talking is capital lockups. people want their money to be as liquid as possible. but here we are talking my china wanting investors to have maybe a lack of of a week or month ofe several months-- lockup the week or month or several months. scarlet: what's the issues are addressed, when msci does add will to its indexes, how

that change the emerging market index, the composition of it? were right now china cuts about 25% of all the shares in the emerging market index, and south korea comes in at number two, i think 13% or so. whenever this happens, and we don't know when that will happen, it will expand to about 23% or so -- 43% or so. regardless of how you look at it, it will be china-heavy. they will be needing to get their money into it. scarlet: and of course the tide of foreign money cannot be kept out forever from china. much more coming up, including a discussion on caterpillar.

scarlet: it is new in san francisco, 3:00 a.m. in hong kong. bill clinton in the spotlight.

he spoke to us about what his role would be if hillary wins. alix: investors are circling greece for the chance for a big payday. when will greece run out of cash? scarlet: catfight -- you can call it that. executive pay at caterpillar shareholder meetings. just how satisfied are they? scarlet: good afternoon, everyone. i am scarlet fu, here with alix steel. alix: let's get straight to a look at markets. triple digit rally on the doubt come up by 264 points. my terminal is telling me the nasdaq one of the biggest winners, 71 points. thank you, greece and germany. the idea that germany blinked here and will perhaps give a greased some of its money if it commits to one econoc