Reuters World News Highlights

ABIDJAN – Ivory Coast’s incumbent leader Laurent Gbagbo has  said he will reject a demand by African heads of state today  that he cede power to his rival Alassane Ouattara or face force.
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GLADSTONE, Australia –
Military aircraft flew supplies to an  Australian town slowly disappearing under floodwater, as  authorities warned today that record floods that have  devastated the northeast were far from over.
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CAIRO –
Angry Coptic Christians clashed with police yesterday as they demanded more protection for Egypt’s Christians  following a New Year’s Day church bombing that killed 21 of  their brethren.

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WASHINGTON –
A fight over the U.S. budget loomed yesterday  as a top aide to President Barack Obama warned of catastrophic  consequences if Republicans follow through on threats to reject  an increase in the nation’s borrowing limit.
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MOSCOW –
Three Russian opposition leaders received short  jail terms yesterday for “disobedience towards police” after a  rally, a party spokesman said, a sign of a new crackdown on  critics of the Kremlin.
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MADRID
– Bar and restaurant owners in Spain, until now one  of Europe’s most smoker-friendly countries, fear that a ban on  smoking in public places that takes effect this weekend will hit  them hard and worsen the economic crisis.
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LAGOS –
Nigeria’s main militant group, which claimed  responsibility for October car bombings in Abuja, said it was  not behind the New Year’s Eve blast in the capital.
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WASHINGTON
– The prospects for cooperation between the  United States and China in space are fading even as proponents  say working together in the heavens could help build bridges in  often-testy relations on Earth.