Saudis rule out production cut, the art of the apology and how to deal with North Korea

Saudi Arabia ruled out a deal by major producers to cut oil output and warned high-cost operators such as US shale drillers to trim costs or risk going bust.

Oil minister Ali al-Naimi said a lack of trust between the world’s biggest producers meant a cut in production “is not going to happen”. He said the kingdom would instead push for a co-ordinated production freeze to help balance a market swamped with an excess of crude which has taken oil prices to their lowest level in more than a decade.

Meanwhile, Opec secretary-general Abdalla El-Badri said increased US production should fill the hole in supply left by a freeze by major oil producers looking to support prices. (FT)

In the news

LSE and Deutsche Börse in merger talks The London Stock Exchange Group and Deutsche Börse said on Tuesday they were in talks over a “merger of equals” in a move that would create a European industry champion and one of the world’s largest exchanges for trading and clearing derivatives. (FT)

StanChart eyes bonus clawbacks Standard Chartered is considering clawing back bonuses from about 150 current and former senior staff, its new chief executive said after reporting its first annual loss for more than a quarter of a century. (FT)

Obama’s plan to close Guantánamo President Barack Obama sent Congress a $475m planto close the controversial prison complex, arguing that keeping it open drains military resources and provides terrorists with a recruitment tool without making the US any safer. The plan is expected to face stiff opposition from Republicans. (WSJ)

London Whale speaks out Bruno Iksil, the former JPMorgan Chase trader at the heart of a trading scandal, has broken his four-year silence to allege that he has been unfairly blamed by the bank and singled out by the media for $6.2bn in trading losses. (FT)

Mars recalls chocolate Confectionery maker Mars has ordered a recall of chocolate products in 55 countries after a customer in Germany found bits of plastic in a Snickers bar. (BBC)

Fifa’s real estate empire Less than a year after a corruption scandal implicated top officials in bribery and kickback schemes, world football’s governing body is getting into residential real estate, with luxury apartments in the Alps and a four-star hotel. (NYT)

It’s a big day for

HP, which reports results for the first time since its historic split in November. Analysts expect that HP’s sales for its fiscal first quarter will be around $12.1bn, with earnings per share of about $0.31. (FT)

Food for thought

India: If they can make it there The country’s hopes of climbing out of poverty hang on Narendra Modi coming good on his manufacturing promises. The launch event — where the stage itself burst into flames — did not exactly bode well. (FT)

Helicopter drops on the horizon The economic forces that have brought the world economy to zero real interest rates and, increasingly, negative central bank rates are strengthening, writes the FT’s Martin Wolf. “Policymakers must prepare for a new “new normal” in which policy becomes more uncomfortable, more unconventional, or both.” (FT)

Brexit and the City The looming In/Out referendum is an issue that has split the City of London, with brokers and hedge fund execs aghast at the masses of EU regulation in one corner and investment bankers keen to commandeer European markets in the other. (FT)

The art of the apology Research shows that effective apologies all tend to share a set of underlying features. For close relationships, it’s all about timing; say sorry too soon and you might miss a crucial step towards reconciliation. (The Atlantic)

How to deal with North Korea The dictatorship is now the world’s most dangerous nation. Japan, South Korea and the US need to take rapid steps to improve missile defence and naval collaboration while imposing tougher sanctions on Pyongyang, writes former Nato supreme commander James Stavridis. (NAR)

Video of the day

Phone makers turn to wearable devices Amid a saturated smartphone market, mobile phone makers are looking to wearable devices to boost profits. The FT’s Daniel Garrahan examines the many wearables on display at the Mobile World Congress in Barcelona. (FT)