Oil, Oil Everywhere

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Last week, as U.S. officials were finalizing their blueprint for how Iraq's postwar oil industry will function, oil producers were jostling to protect hard — won market share in advance of a resumption of exports from Iraq. OPEC nations, in a meeting in Vienna, agreed to a slight drop in output to try to support prices in the short term, although the cartel also announced an increase in official production targets. And in Russia, the world's second — largest oil exporter, the energy industry received a boost when companies Yukos and Sibneft said they had agreed in principle to a merger that would create the world's fourth — largest oil and gas producer — one that will pump about 2.2 million barrels of oil a day. It's not the first time this merger has been touted; the companies came close to a similar move about five years ago. The deal — which will likely spark more consolidation in Russia's energy industry and could be completed by the end of the year — must still

INDICATORS Mind Your Own Business The European Commission intends to suggest the creation of national single — market watchdogs to sniff out illegal protectionist measures in member states. Critics charge that the watchdogs may simply be Brussels' way of distancing itself from an intractable problem. Food For Thought Britain's National Union of Teachers condemned as derisory so — called cause — related marketing schemes in schools proposed by companies such as Cadbury Schweppes. Under the plans, schools collect tokens — found as part of product packaging — and then exchange the tokens for sports equipment or computers.

receive government approval. But Prime Minister Mikhail Kasyanov has already given his blessing, saying such nascent giants could act as drivers for the country's entire economy

Misinformation Mania
The fighting in Iraq may have subsided, but it seems companies have only just begun to exploit the commercial potential of Mohammed Saeed al — Sahhaf, the reality defying Iraqi Information Minister. Companies on at least three continents are already using a-Sahhaf in their marketing. The Northlands Park racecourse in Alberta, Canada, recently ran an ad suggesting the Information Minister would make a good race commentator since "a little inaccuracy [makes] a race more exciting"; in Kuwait City, the designer boutique Villa Moda is giving away promotional T shirts that bear a picture of al — Sahhaf and the slogan "We even control fashion"; and low — cost airline Ryanair produced an advertisement suggesting that the "lowest fares" claims of its rival easyJet may be as valid as al — Sahhaf's pronouncements. Under other circumstances, al — Sahhaf might have had a career in advertising.

Loan Rangers
Five of Germany's banking giants are planning a joint venture to sell on some of their loans to bond investors. Because the government — backed program could help the banks free up sorely needed capital, German politicians hope the plan will spur lending to small — and medium — sized German businesses, which have been hit hard by the recent downturn.

THE BOTTOM LINE
A difficult quarter, aggravated by late Easter
PETER BRABECK, chief executive of Swiss consumer — foods giant Nestlé, blaming a tardy Easter Bunny as one of the reasons for the company's 7.5% fall in first — quarter sales