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HONG KONG (Reuters) � Global stock markets were on their way to a third week of gains on Friday, with emerging markets favored, while the threat of Japanese intervention kept the yen close to its lows for the month.

Japanese stocks were poised for the largest weekly gains in two months following Tokyo's aggressive yen selling on Wednesday, which may have totaled as much as 1.9 trillion yen, and repeated pledge to do more if necessary.

Still, that has been mostly catch up with other advanced markets after underperforming most of the current quarter.

"In addition to the fact that investors aren't still entirely sure about the outlook for the global economy, they are also closely watching whether there would be any comments from the United States on Japan's currency intervention," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities in Tokyo.

The Nikkei share average was up 0.7 percent on the day (.N225) and has gained 3.7 percent this week after yen selling intervention brightened the prospects of exporters.

The MSCI index of Asia Pacific shares outside Japan edged up 0.3 percent (.MIAPJ0000PUS), led mainly by the materials sector as investors scooped up cheaper stocks after a selloff on Thursday.

The MSCI all-country world stocks index (.MIWD00000PUS) was up 1.7 percent so far this week, on track for the third week of rises. Emerging market stocks, up 2.1 percent in the week, have been a big contributor.

Chinese stocks will be a focus for investors after domestic media reported the country's banking regulator is not planning on raising capital requirements, contrary to other reports earlier in the week.

China set the mid-point of the yuan's daily trading range at a new high for the sixth consecutive day. This came on the heels of U.S. Treasury Secretary Timothy Geithner's vow to the U.S. Congress to rally other world powers to push Beijing to move faster on the yuan.

China's guiding hand to lift its currency has been a signal for other Asian policymakers earlier in the year to allow their own currencies to strengthen. However, Japan's intervention this week along with doubts about the pace of global recovery appears to have changed that trend.

In currency markets, the U.S. dollar was nearly unchanged on the day at 85.70 yen, still within spitting distance of its overnight high around 85.93 yen.

Both short-term investors have begun to close out of their bets on yen strength after Wednesday's nearly 3 yen gain in the dollar. However, Japanese exporters may sell dollars near 86 yen, putting a lid on dollar strength, a trader said.

"The real key positioning is probably what the corporates and Japanese investors need to do and I think there are still corporates out there that need to sell," said Greg Gibbs, currency strategist at Royal Bank of Scotland in Sydney.

The euro's performance against the yen will also be watched on Friday, after the single currency rallied some 0.6 percent against the dollar on Thursday after auctions of 10- and 30-year Spanish government bonds produced lower yields than a previous sale in June.

The euro was at 112.07 yen, steady on the day.

The yield on the 10-year U.S. Treasury note was largely unchanged on the day at 2.76 percent after climbing 4 basis points on Thursday after a drop in initial jobless claims.

Still, the spread of the U.S. 10-year yield of the same maturity Japanese government bond has widened 7 basis points this week, helping Japan's cause to pull down the yen.

(Additional reporting by Charlotte Cooper and Aiko Hayashi in Tokyo)

TORONTO (Reuters) � BlackBerry maker Research In Motion (RIM.TO) (RIMM.O) reported stronger-than-expected profit, revenue and shipments on Thursday, defying expectations it would lose more ground to Apple (AAPL.O) and other rivals.

RIM shares surged as much as 6.5 percent following its fiscal second-quarter results, released after the close of regular trade, as the company issued an outlook for the current three months that also topped expectations.

The robust performance, marred only by a shortfall in net subscriber additions, came as a surprise for investors who have been focusing on the company's perceived shortcomings.

It ran counter to a growing perception that RIM's position in the booming global smartphone market is eroding while Apple's (AAPL.O) iPhone and devices running Google's (GOOG.O) Android operating system are picking up steam.

"Clearly I think people are underestimating the smartphone market coupled with the strength of RIM within it," said Daniel Ernst, an analyst at Hudson Square Research.

RIM launched its highly anticipated BlackBerry Torch in the United States in August, with AT&T (T.N) as the initial carrier, but the reception for the touchscreen device was muted, fueling negative sentiment ahead of Thursday's results.

"Torch launched late in the quarter, in one country with one carrier. Even if it had done fantastic it wouldn't have changed the numbers that much," Ernst said.

The Waterloo, Ontario-based company will roll the Torch out to 75 more carriers in the current quarter, RIM said in a conference call following the earnings.

At the same time, RIM is walking a tightrope in India, Saudi Arabia and the United Arab Emirates, where governments seek access to the company's fabled encrypted data. The controversy has exacerbated concerns about RIM's competitive position.

STRONG SHOWING

For the three months ended August 28, profit rose to $796.7 million, or $1.46 a share, on revenue of $4.62 billion. That compares with earnings of $475.6 million, or 83 cents, in the same period last year.

Analysts had on average forecast earnings of $1.35 per share and revenue of $4.47 billion, according to Thomson Reuters data.

RIM said about $1.5 billion worth of stock repurchases in the quarter added about 2 cents to its earnings per share.

RIM said its strong showing would continue in the current quarter ending November 27. It forecast earnings per share between $1.62-$1.70 on revenue in a $5.3 billion to $5.55 billion range. Both numbers streaked past Wall Street estimates of $1.39 and $4.8 billion.

Jim Basillie, RIM's co-CEO, heavily hinted in the conference call that RIM would use the upcoming Dev Con developer conference in San Francisco to paint a picture of future plans.

"You're going to see some very interesting strategic extensions at Dev Con and signaling where we're going, so I think we said on the last call this will all become very, very apparent by the end of September," Basillie said.

The average selling price of BlackBerry devices nudged higher in the latest quarter, to about $304, and should rise to between $310 and $315 this quarter as higher-end devices like the Torch roll out, RIM said.

RIM expects to ship between 13.8 million and 14.4 million units in the third quarter, well ahead of the 12.5 million expected by 16 analysts in a Reuters poll.

It shipped 12.1 million units in the second quarter, at the high end of its own guidance and well above the 11.8 million expected by analysts.

"This is a nice surprise on the upside. Revenue was better, EPS was better, units were better both for the current quarter, as well as the November quarter guidance," said Matthew Thornton from Avian Securities in Boston.

SUBSCRIBER NUMBERS DISAPPOINT

Still, the Canadian technology company added fewer subscribers than expected, which RIM blamed on tough competition in the United States early in the quarter and the row over data security in India and the Middle East in August.

"That was really the only weak spot here, but that is more than compensated from just really strong results across the board and really strong guidance for next quarter," said Dushan Batrovic from Dundee Securities.

RIM said it expects to add between 5 million and 5.4 million subscribers in the current quarter. Analysts had expected 5.2 million net subscriber additions this quarter.

RIM's gross margin was 44.5 percent, versus expectations of 43.9 percent, while the company said it expects its third quarter margin to slip to around 42 percent.

RIM said it will no longer announce net subscriber additions and average selling price figures after the third quarter, as overseas revenue streams grow and the metrics become too complex to measure.

The shares were trading 4 percent higher in after-hours trade in the United States at $48.36 after rising as much as 6.5 percent immediately after the announcement.

The stock had been up more than 2 percent before the results, largely as a result of short-sellers covering their positions.

(Additional reporting by Euan Rocha in Toronto, Sinead Carew in New York, Susan Taylor in Ottawa; Editing by Frank McGurty)

SEATTLE (Reuters) � Oracle Corp (ORCL.O) said on Thursday fiscal first-quarter profit rose 20 percent, beating expectations, on strong sales of new software and growth of its new hardware business.

The strong results bucked the trend of recent pessimism among tech companies about the economic recovery, and investors sent Oracle shares up 4 percent in after-hours trading.

"Despite the fact that the economy is having difficulties, for Oracle it continues to show that their consolidated strategy continues to pay off," said Michael Yoshikami, chief investment strategist at YCMNET Advisors.

"The broader tech sector is showing that though the economy is struggling, technology is probably going to be a bit more resistant to the economic downturn as companies look to become more efficient with fewer employees."

The world's No. 3 software maker, which sells business software, database systems and now server hardware through its recent purchase of Sun Microsystems, reported net profit of $1.35 billion, or 27 cents per share, compared with $1.12 billion, or 22 cents per share, in the year-ago quarter.

Excluding some items, it reported a profit of 42 cents per share. That beat Wall Street's average estimate of 37 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 50 percent to $7.6 billion on a non-GAAP basis, helped by the acquisition of Sun earlier this year. Analysts were expecting $7.27 billion, on average. GAAP revenue increased 48 percent to $7.5 billion.

New software sales -- which generate long-term maintenance contracts, signaling future profitability -- were up 25 percent at $1.3 billion. The company had forecast three months ago they would rise between 2 percent and 12 percent.

"Our software business grew strongly in all regions," Oracle President Safra Catz said in a statement. "Our hardware business also grew faster than we expected with Sun Solaris servers and Exadata leading the way."

Oracle's shares were up 4 percent at $26.40 after closing at $25.36 on Nasdaq.

The company is expected to make a forecast on sales of new software for the current quarter on a conference call later on Thursday.

Chief Executive Larry Ellison and new President Mark Hurd -- the former Hewlett-Packard Co (HPQ.N) CEO who joined Oracle earlier this month -- are expected to talk to investors on that call.

(Reporting by Bill Rigby; Additional reporting by Liana Baker and Alex Dobuzinskis; Editing by Matthew Lewis)

TORONTO (Reuters) � BlackBerry maker Research In Motion (RIM.TO) (RIMM.O) reported stronger-than-expected profit and handset shipments on Thursday, sending its stock surging as it defied expectations that it would lose more ground to Apple (AAPL.O) and other rivals.

The company earned $796.7 million, or $1.46 a share, on $4.62 billion revenue in the three months ended August 28, up from $475.6 million, or 83 cents, in the same period last year. It said around $1.5 billion worth of stock repurchases in the quarter added about 2 cents to its earnings per share.

"This is a nice surprise on the upside. Revenue was better, EPS was better, units were better both for the current quarter, as well as the November quarter guidance," said Matthew Thornton from Avian Securities in Boston.

Analysts had on average forecast earnings of $1.35 per share on revenue of $4.47 billion, according to Reuters data.

RIM, whose smartphones compete with those from the likes of Apple and Motorola (MOT.N), said it shipped 12.1 million units, at the high end of its own guidance.

Analysts had expected 11.8 million units and had worried about growing challenges from Apple's iPhone and handsets using on Google's (GOOG.O) Andriod technology

One of the only metrics to fall short of expectations was net subscriber additions for the quarter, which came in at 4.5 million compared to a forecast of around 5 million.

"That was really the only weak spot here, but that is more than compensated from just really strong results across the board and really strong guidance for next quarter, said Dushan Batrovic from Dundee Securities.

RIM's gross margin was 44.5 percent, versus expectations of 43.9 percent.

RIM said it expects to add between 5 million and 5.4 million subscribers in the current quarter, which ends on November 27. Analysts had expected 5.2 million net subscriber additions this quarter.

The Waterloo, Ontario-based company's shares jumped more than 6 percent in after-hours trade in the United States. It had been up more than 2 percent before the results, largely as a result of short-sellers covering their positions.

Analysts had been worried about a tepid reception for RIM's newest smartphone, the BlackBerry Torch, which went on sale in the United States on August 12 and which combines an iPhone style touchscreen with a slide-out keyboard like traditional BlackBerrys.

Daniel Ernst, of Hudson Square Research said the market had over-reacted to the lackluster reception for the Torch.

"Torch launched late in the quarter, in one country with one carrier," he said. "Even if had done fantastic it wouldn't have changed the numbers that much,"

WASHINGTON (Reuters) � Treasury Secretary Timothy Geithner sought to convince U.S. lawmakers on Thursday he was taking a tougher line on China's currency and trade policies, but Beijing warned that pressure from Washington could backfire.

Striking his sharpest tone yet in what has long been a flashpoint in U.S.-China relations, Geithner planned to tell a Senate hearing that the yuan was strengthening too slowly and he was looking for ways to get Beijing to move faster.

Geithner's testimony could be critical to whether lawmakers, who say China hurts U.S. jobs and corporate profits by keeping its currency artificially cheap, decide to push ahead on legislation targeting Beijing's policies before November elections, which are being shaped by voter anguish over the economy.

"China needs to allow significant, sustained appreciation over time to correct this undervaluation and allow the exchange rate to fully reflect market forces," Geithner said in prepared remarks for the first of a pair of Capitol Hill appearances.

Signaling a reluctance to give in, China's Foreign Ministry said pressure over the yuan exchange rate "not only would fail to solve the problems; on the contrary, it could have the opposite effect."

It was unclear, however, whether Geithner's get-tough talk would be enough to overcome skepticism in Congress over the administration's approach and head off a bill that would slap punitive duties on Chinese goods.

"There's no question that the economic and trade policies of China represent clear roadblocks to our recovery," Senate Banking Committee Chairman Christopher Dodd said, calling for "concrete action" to address the situation.

U.S. PATIENCE WEARS THIN

With the U.S. jobless rate stuck near 10 percent while China is again running up big trade surpluses, some analysts see chances for legislation as more likely now than at any time in the recent past.

Geithner made clear that U.S. patience on China's currency policy was wearing thin.

Implicit was the threat that the Treasury Department's next semiannual foreign exchange report due on October 15 could bring a declaration that China manipulates its currency for unfair advantage, which would open the door to U.S. trade sanctions.

But Geithner also appeared to be looking for breathing room for the administration to try to squeeze concessions from the Chinese before frustrated lawmakers press ahead with a bill that would force its hand.

China in June, a week ahead of a meeting of Group of 20 leaders in Canada, had freed the yuan from a nearly two-year-old peg to the dollar.

RETALIATION POSSIBLE

China could retaliate if Congress actually passes legislation. A trade war between the two countries would be a serious blow to President Barack Obama's effort to ease strains on a range of economic and foreign policy disputes.

Complicating the situation was Japan's first intervention in six years on Wednesday to push its own currency down from 15-year highs against the dollar as Japan struggles to support its export-led economy. Analysts said allowing Japan a free pass to intervene would make it harder to persuade China to curtail such activity.

The yuan has risen only about 1.25 percent against the dollar since Beijing announced the end to its currency peg in June, an increase that Geithner has called insufficient.

In the past six days, however, the yuan has scored its fastest rise since February 2008 -- a move that some analysts view as a response to growing U.S. rhetoric.

The Obama administration faces a delicate balancing act. It wants to pay homage to American resentment over Chinese trade practices but also must avoid alienating Beijing, whose diplomatic support is needed to tackle nuclear standoffs with Iran and North Korea.

Washington is also mindful that Beijing holds massive amounts of U.S. debt, and the two countries are deeply entwined economically.

(Additional reporting by Paul Eckert, writing by Matt Spetalnick; Editing by Leslie Adler)

DETROIT (Reuters) � General Motors Co (GM.UL) is determined to pay back taxpayers as quickly as possible, but the process could take "several years," GM Chief Executive Dan Akerson said on Thursday.

Paying back the government all at once would be "unrealistic," Akerson said in his first meeting with reporters since becoming CEO two weeks ago.

Akerson declined to comment directly on GM's plans for an IPO because of U.S. securities regulations.

The IPO could come within about two months, people involved in the process have said, and would allow the U.S. government to begin to reduce its stake in the automaker and allow GM to start to shed the stigma of a government bailout.

Akerson, a longtime telecommunications industry executive who was head of buyouts at The Carlyle Group private equity firm, said he wanted to build a "culture of speed" at GM, which has been criticized for moving too slowly to make changes.

"We need to have an attacking culture, not a defending culture," said Akerson, a graduate of the U.S. Naval Academy and former Navy officer.

He said GM needed to anticipate more during the development process where its rivals were heading with their competing vehicles, to get ahead in quality and build sales momentum.

Akerson was named GM's fourth chief executive in an 18-month period during a shake-up in August when former CEO Ed Whitacre stepped down to clear the way for a longer-serving CEO to guide the company through its upcoming IPO.

Speaking at GM's Detroit headquarters, Akerson said he intends to steer GM through a period of potential growth and was looking for a house in the Detroit area.

"I don't see myself as transitional," he said.

Akerson also said he was not contemplating more management changes at the automaker after a tumultuous period in which the company has turned over top managers in its finance, marketing and vehicle development operations.

"I like the team that's on the field," Akerson said.

Akerson was named to GM's board in July 2009 by the U.S. Treasury after the automaker emerged from a government-funded bankruptcy that left the government with a nearly 61 percent stake.

The government's ownership of GM has not changed the way it does business, Akerson said, adding that he updates Ron Bloom -- the Obama administration official in charge of the auto bailout -- every few weeks by telephone.

"We keep them informed, I do it personally," he said.

Akerson, a Republican who supported Sen. John McCain's presidential bid, said GM aims to return the taxpayer money.

While GM has faced a backlash from the bailout and has been criticized for becoming a ward of the state as "government motors," Akerson said many people had approached him to let him know they also wanted the GM turnaround to succeed.

"I don't see where there's this patina of government motors but that's OK with me," he said.

Separately, Akerson said he was open to discuss the potential for profit-sharing with the United Auto Workers union in contract talks that begin next year.

UAW President Bob King has said the union would look to win back some of the concessions it granted to GM and other U.S. automakers during the industry downturn over the past five years.

Akerson is expected to become chairman of GM at the end of the year.

(Reporting by Kevin Krolicki; Editing by Maureen Bavdek)

WASHINGTON (Reuters) � New claims for unemployment benefits dropped to a two-month low last week, hinting at some stability in the labor market, while producer prices recorded their largest gain in five months.

Although the reports on Thursday confirmed the economy remained on a slow growth path, they further reduced the odds of a double-dip recession and deflation feared by financial markets.

"The economy will not run away, but at least it's not shriveling," said Pierre Ellis, senior economist at Decision Economics in New York.

Initial claims for state unemployment benefits slipped 3,000 to a seasonally adjusted 450,000, the lowest since the week ended July 10, the Labor Department said on Thursday. Financial markets had expected a rise to 460,000.

In a second report, the department said its seasonally adjusted index for prices paid at the farm and factory gate increased 0.4 percent after gaining 0.2 percent in July. Markets had expected a 0.3 percent increase last month.

U.S. stock index futures cut losses on the data, while Treasury debt prices trimmed gains. The U.S. dollar slipped against the yen.

A Labor Department official said data for only two states had been estimated for last week's jobless claims report. The four-week average of new claims, considered a better measure of underlying labor market trends, dropped 13,500 to 464,750.

The second straight week of declines pulled claims for unemployment benefits further away from a nine-month high of 504,000 touched in mid-August and claims are now in the upper end of a 400,000-450,000 range that analysts say is associated with sustainable job growth.

The impaired labor market, characterized by a 9.6 percent unemployment rate, is hobbling the economy's recovery from its most painful recession since the 1930s.

The Federal Reserve is closely watching the jobs market, but is not expected to announce any news steps to ease monetary policy at a regular meeting next Tuesday. Many analysts, however, believe it will resume purchases of government debt by year-end to keep interest rates low and shore up the economy.

"These (PPI) numbers should reduce concerns about deflation a bit, but it probably won't take the discussion about further easing off the table," said Gary Thayer, chief macrostrategist at Wells Fargo Advisors in St. Louis.

Frustration over a lack of jobs is eroding President Barack Obama's popularity among Americans and could see the Democratic Party severely punished in November 2 congressional elections.

Many analysts predict Republicans could take control of the House of Representatives from Democrats.

With the economy sluggish, price pressures remain muted, but the rise in producer inflation in August took some of the edge off deflation worries.

Producer prices last month were bumped up by a 2.2 percent jump in energy costs. Gasoline prices surged 7.5 percent, the largest increase since January, after falling 2.2 percent in July. Food prices fell 0.3 percent after rising 0.7 percent in July.

Stripping out volatile food and energy costs, core producer prices edged up 0.1 percent last month, matching market expectations. Core PPI increased 0.3 percent in July.

Core PPI was held back by a 0.4 percent decline in passenger car prices, which offset a 0.2 percent increase in the cost of light motor trucks, the Labor Department data showed.

In the 12 months to August, the core producer price index rose 1.3 percent after increasing 1.5 percent in July. The year-on-year increase was in line with market expectations.

(Reporting by Lucia Mutikani, additional reporting by Ellen Freilich in New York; Editing by Andrea Ricci)

SCHENECTADY, New York (Reuters) � FedEx Corp (FDX.N) reported a quarterly profit that more than doubled, but came slightly shy of Wall Street's revised expectations, as a recovery in the global economy sparked demand for the U.S. company's package-delivery services.

FedEx said on Thursday fiscal first-quarter profit was $380 million, or $1.20 per share, compared with earnings of $181 million, or 58 cents per share, a year earlier.

Analysts, on average, had anticipated earnings of $1.21 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 18.1 percent to $9.46 billion.

The Memphis, Tennessee-based company, which had last raised its 2011 profit forecast in July, increased it for a second time to a range of $4.80 to $5.25 per share, excluding the cost of merging some ground operations. It said demand for air freight services rose as companies -- particularly Asian electronics makers -- scrambled to rebuild the inventories they had cut to the bone during the recession.

FedEx shares are up about 2 percent so far this year, outpacing the 0.5 percent rise of the Standard & Poor's 500 (.SPX), but lagging the 18 percent rise of larger rival United Parcel Service Inc (UPS.N).

(Reporting by Scott Malone; Editing by Maureen Bavdek)

LONDON (Reuters) � Stock index futures pointed to a lower start on Thursday, with the S&P 500, Dow Jones and Nasdaq futures 0.1 to 0.2 percent lower at 5.17 a.m. EDT ahead of U.S. weekly jobless claims and U.S. producer price data for August.

At 8.30 am., investors will eye the Labor Department release of first-time claims for jobless benefits for the week ended September 11. Economists in a Reuters survey forecast a total of 460,000 new filings compared with 451,000 in the prior week.

Investors will also watch the Labor Department release of the August producer price index at 1230 GMT. Economists in a Reuters survey forecast a 0.3 percent rise compared with a 0.2 percent rise in July.

Looking at earnings news, investors will focus on first-quarter results from FedEx and Oracle (ORCL.O).

At 10 a.m., Treasury Secretary Timothy Geithner testifies before the Senate Banking Committee on the Treasury Department's report on international economic and exchange rate policies. At 1800 GMT he testifies before the House Ways and Means Committee on China's exchange rate policy.

President Barack Obama plans to name Wall Street critic Elizabeth Warren to a special advisory role helping to set up the new U.S. consumer financial watchdog, Democratic party sources said on Wednesday.

No thanks. That is what Yahoo Inc (YHOO.O) Chief Executive Carol Bartz tells the founder of Alibaba Group whenever he asks if he can buy back Yahoo's 39 percent stake in the Chinese Internet company.

Yahoo (YHOO.F) shares were up 2 percent in Frankfurt.

European shares slipped 0.4 percent on Thursday in morning trade, with miners tracking metal prices lower and sentiment weighing after data showed British retail sales volumes fell last month for the first time since January.

Wall Street advanced on Wednesday but remained hemmed in a trading range as disappointing economic data hindered the S&P 500 from breaking through a stubborn technical level.

The Dow Jones industrial average (.DJI) gained 0.4 percent, the Standard & Poor's 500 Index (.SPX) rose 0.4 percent and the Nasdaq Composite Index (.IXIC) climbed 0.5 percent.

(Reporting by Joanne Frearson; Editing by Michael Shields)

WASHINGTON (Reuters) � The economic costs of the Obama administration's six-month moratorium on deepwater drilling in the Gulf of Mexico will be less severe than first feared, according to a U.S. government report released on Thursday.

The inter-agency report, which was based on economic data and interviews with oil rig operators, projected up to 12,000 temporary job losses in the region -- a lower figure than the 23,000 projected in an earlier Interior Department report.

"We estimate that the six-month moratorium may temporarily result in up to 8,000 to 12,000 fewer jobs in the Gulf Coast," the report said. "These jobs would not be permanently lost as a result of the moratorium; most would return following the resumption of deepwater drilling in the Gulf of Mexico."

The Obama administration put the moratorium in place after the BP oil spill that began in April after the Deepwater Horizon rig exploded and sank, killing 11 people and sparking one of the biggest environmental disasters in U.S. history.

The administration said the moratorium was necessary to ensure further accidents did not occur. The industry and some lawmakers called the ban unnecessary and economically harmful.

The moratorium is now scheduled to run until November 30.

Despite the ban, the report said most deepwater rigs have remained in the Gulf, drilling contractors have kept crews, and rig operators have made only minimal layoffs.

"Contrary to the worst-case assumptions in prior studies, many deepwater drilling operators and contractors have kept most of their employees on payroll," it said. "Earlier studies assumed that these employees would have been let go."

Small businesses were harder hit by the employment fallout than larger companies, the report said.

The report also found that delayed oil production -- what it called "the other primary economic consequence of the moratorium" -- was small compared to world production and not expected to have a "discernible effect" on oil prices.

"Consistent with other studies, we estimate that the moratorium will reduce Gulf of Mexico oil production by about 31,000 barrels per day in the fourth quarter of 2010 and by roughly 82,000 barrels per day in 2011," it said.

(Editing by Bill Trott)