YENAGOA, Nigeria | Sat Dec 22, 2012 6:14am EST

YENAGOA, Nigeria (Reuters) - Four South Koreans and a Nigerian who were abducted earlier this week in the oil-producing Niger Delta have been released, police said on Saturday.

The four foreign hostages were handed over to South Korean officials in the West African country late on Friday after police arrested suspects in the case.

"The victims were picked up from Azikoro village by men of the special security outfit at about 9 p.m. (2000 GMT)," Bayelsa Police Commissioner Kings Omire told Reuters.

Police spokesman Fidelis Odunna said: "They were released voluntarily because we had suspects in our custody and owing to a hit on their camp, they had to let the men go."

Omire said another Nigerian taken had already been released, meaning all six who were abducted were now free. The two arrested suspects were being interrogated, he said.

There was no immediate comment from either the South Korean government or Hyundai Heavy Industries, the conglomerate that employs the abducted workers.

Kidnapping is rife in Africa's top oil producer, making millions of dollars a year for criminal gangs. It is common across the south, especially in the Niger Delta.

Gunmen abducted two Lebanese men working for Nigerian construction company Setraco in Delta state this month, and killed a soldier protecting them.

The 83-year-old mother of Finance Minister Ngozi Okonjo-Iweala was kidnapped on December 9 in Delta state but was freed five days later after a military search.

In the north of Nigeria, where Islamist militants operate, another form of kidnapping of foreigners has emerged this year.

A French national working for renewable energy company Vergnet was abducted close to the border with Niger on Wednesday.

French intelligence agency DCRI believes the kidnappers were linked to "terrorist activity". Islamist groups linked to Boko Haram have been behind similar kidnappings.

Boko Haram, which wants to impose strict sharia (Islamic) law in a country with a mixed Christian and Muslim population, has killed hundreds in an insurgency this year in northern Nigeria.

(Writing by Joe Brock; Editing by Mark Trevelyan)

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MOSCOW | Sat Dec 22, 2012 6:34am EST

A Russian Foreign Ministry statement named the victims and said the "tragic occurrence" in the African nation on Friday underscored the need to provide security for U.N. peacekeeping missions.

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1 of 28. A girl casts her father's vote in a polling centre during the final stage of a referendum on Egypt's new constitution in the El Arbeen district of Suez, 120 km (75 miles) away from Cairo, December 22, 2012. Egyptians voted on a constitution drafted by Islamists on Saturday in a second round of balloting expected to approve the charter that opponents say will create deeper turmoil in Egypt.

CAIRO | Sat Dec 22, 2012 6:15am EST

CAIRO (Reuters) - Egyptians voted on a constitution drafted by Islamists on Saturday in a second round of balloting expected to approve a charter that opponents say will create deeper turmoil in the Arab world's most populous nation.

Islamist supporters of President Mohamed Mursi, who was elected in June, say the constitution is vital to moving Egypt towards democracy two years after Hosni Mubarak was overthrown in a popular uprising. It will help restore the stability needed to fix an economy that is on the ropes, they say.

But the opposition says the document is divisive and has accused Mursi of pushing through a text that favors his Islamist allies while ignoring the rights of Christians, who make up about 10 percent of the population, as well as women.

As polling opened on Saturday, a coalition of Egyptian rights groups reported a number of irregularities.

They said some polling stations had opened late, that Islamists urging a "yes" vote had illegally campaigned at some stations, and reported some voter registration irregularities, including the listing of one dead person.

The first round of voting last week resulted in a 57 percent vote in favor of the constitution, according to unofficial figures.

Analysts expect another "yes" on Saturday because the vote covers rural and other areas seen as having more Islamist sympathizers. Islamists may also be able to count on many Egyptians who are simply exhausted by two years of upheaval.

If the basic law is passed, a parliamentary election will be held in about two months.

After the first round of voting, the opposition said a litany of alleged abuses meant the first stage of the referendum should be re-run.

But the committee overseeing the two-stage vote said their investigations showed no major irregularities in voting on December 15, which covered about half of Egypt's 51 million voters.

There was no indication on Saturday that the alleged abuses were any worse than those claimed during the first round.

"I'm voting 'no' because Egypt can't be ruled by one faction," said Karim Nahas, 35, a stockbroker, heading to a polling station in Giza, a province included in this round of voting which covers parts of greater Cairo.

At another polling station, voters said they were more interested in ending Egypt's long period of political instability than in the Islamist aspects of the charter.

"We have to extend our hands to Mursi to help fix the country," said Hisham Kamal, an accountant.

Polling stations opened at 8 a.m. (0600 GMT) and close at 7 p.m. (1700 GMT) though voting could be extended as it was last week. Queues formed at some polling stations around the country.

Unofficial tallies are likely to emerge within hours of the close, but the referendum committee may not declare an official result for the two rounds until Monday, after hearing appeals.

MORE UNREST

Even if the charter is approved, the opposition say it is a recipe for trouble since it has not received broad consensus backing from the population. They say the result may go in Mursi's favor but it will not be the result of a fair vote.

"I see more unrest," said Ahmed Said, head of the liberal Free Egyptians Party and a member of the National Salvation Front, an opposition coalition formed after Mursi expanded his powers on November 22 and then pushed the constitution to a vote.

Citing what he said were "serious violations" on the first day of voting, he said anger against Mursi and his Islamist allies was growing: "People are not going to accept the way they are dealing with the situation."

At least eight people were killed in protests outside the presidential palace in Cairo this month. Islamists and rivals clashed on Friday in the second biggest city of Alexandria, hurling stones at each other. Two buses were torched.

The head of the Muslim Brotherhood, an Islamist group that represents Mursi's power base, said the vote was an opportunity for Egypt to move on.

"After the constitution is settled by the people, the wheels in all areas will turn, even if there are differences here and there," the Brotherhood's supreme guide, Mohamed Badie, said as he went to vote in Beni Suef, an area south of Cairo.

"After choosing a constitution, all Egyptians will be moving in the same direction," he said.

The vote was staggered after many judges refused to supervise the ballot, meaning there were not enough to hold the referendum on a single day nationwide.

The first round was won by a slim enough margin to buttress opposition arguments that the text was divisive. Opponents who include liberals, leftists, Christians and more moderate-minded Muslims accuse Islamists of using religion to sway voters.

Islamists, who have won successive ballots since Mubarak's overthrow albeit by narrowing margins, dismiss charges that they are exploiting religion and say the document reflects the will of a majority in the country where most people are Muslim.

(Additional reporting by Tamim Elyan; Writing by Edmund Blair and Giles Elgood; Editing by Andrew Osborn)

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KANO, Nigeria | Sat Dec 22, 2012 7:08am EST

KANO, Nigeria (Reuters) - Two suicide car bombers attacked the offices of two mobile phone operators on Saturday in Nigeria's northern city of Kano, killing themselves but no civilians, police said.

India's Airtel and South Africa's MTN were the targets.

Islamist sect Boko Haram has previously blown up telephone masts and offices of phone companies, saying they help the security forces catch its members.

"The one who hit the Airtel office was shot by military men before the bomb exploded ... at the MTN office the car rammed into the fence but no civilians were killed," Ibrahim Idris, the chief of police in Kano, told Reuters. Both bombs went off.

A military source said one security guard was injured and has been taken to hospital.

MTN and Airtel Nigeria's parent company Bharti Airtel, India's top cellphone operator, gave no immediate comment.

The national emergency agency confirmed the bombings and said it was not aware of any civilian casualties. The security forces have played down the death toll in previous bombings.

At least 2,800 people have died in fighting in the largely Muslim north since Boko Haram launched an uprising against the government in 2009, watchdog Human Rights Watch says.

The sect wants to impose strict Islamic law on a country of 160 million people split roughly equally between Christians and Muslims.

The group has previously targeted churches on Christmas Day and security has been increased in all the major northern cities, although security experts say given the scale of Christian worship in Nigeria they cannot protect everyone.

Kano, Nigeria's second-largest city after the southern commercial hub Lagos, was the site of Boko Haram's deadliest attack which killed at least 186 people in January in coordinated bombings and shootings.

Armed police have been guarding major churches in Kano this week and additional police checkpoints have been set up around the majority-Muslim city, a Reuters witness said.

Police in Kano said this week that their anti-terrorism squads have been searching houses and buildings they suspect to be hideouts of criminals and "terrorists".

Security experts say they believe Boko Haram is seeking to spark a religious conflict by targeting Christians in a country where ethnic violence has flared up periodically in recent years, in some cases killing hundreds in the space of hours.

A French national was kidnapped in far northern Nigeria, close to the border with Niger, this week by people France's intelligence agency said were "an organised group linked to a terrorist activity".

(Additional reporting by Isaac Abrak in Kaduna, Kaustubh Kulkarni in Mumbai and Pascal Fletcher in Johannesburg; Writing by Joe Brock; Editing by Richard Meares)

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NEW YORK | Sat Dec 22, 2012 1:09am EST

NEW YORK (Reuters) - Fears about imminent tax hikes and cuts to government spending are taking a toll on U.S. shoppers and could deprive retailers of a strong finish to the 2012 holiday shopping season.

The acrimonious debate in Washington over how to avoid the so-called fiscal cliff has cast a pall over shopper sentiment, retail experts say, as consumers head to the malls on the last Saturday before Christmas - typically one of the busiest shopping days of the year.

Talks to avoid the fiscal cliff stalled on Thursday when Republican lawmakers rejected House Speaker John Boehner's proposal aimed at winning concessions from President Barack Obama.

"The longer Congress delays making a decision on the fiscal cliff and the more uncertainty people feel, as we go toward Christmas, they would start pulling back on their spending," said Ron Friedman, retail practice leader at consulting firm Marcum LLP. "I don't think we're going to get a great pickup in the last few days here."

About 17 percent of the 1,514 Americans who participated in a Reuters/Ipsos poll conducted December 17-20 said the impending "fiscal cliff" was making them spend less this season.

U.S. consumer sentiment also plummeted in December as Americans were unnerved by ongoing negotiations, data showed.

The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment tumbled to 72.9 from 82.7 in November, worse than forecasts for 74.7. It was the lowest level since July.

"What could have been a merry Christmas is going to turn to a ho-hum Christmas, and we can thank our, you know, politicians for getting in the middle of it all," NPD analyst Marshal Cohen said. "It is like this great unknown puts a big damper on the consumer feeling confident to go out and spend more."

More than 60 percent of U.S. consumers have already finished more than three-quarters of their holiday shopping, according to a Reuters/Ipsos poll released on Thursday. This means retailers will have to offer deeper discounts to force Americans to open their wallets in the last lap of the holiday season.

The holiday quarter can account for about 30 percent of annual sales and half of profit for many chains, and experts including Cohen and Friedman see retailers pulling out all the stops this weekend and the week ahead to woo last-minute shoppers.

"The only way retailers now are going to be able to get a boost is by creating their own stimulus package, and that stimulus package is going to be markdowns," Cohen said.

Earlier this week, research firm ShopperTrak lowered its sales forecast for November and December and now expects sales to be up 2.5 percent, rather than up 3.3 percent.

Many retailers reported record traffic at the beginning of the season, but several, including Macy's Inc and Saks Inc, lost a lot of business because of Hurricane Sandy.

Earlier this week, Redbook Research said chain-store same-store sales rose 2.2 percent so far in December, suggesting shoppers are indeed cooling their heels. Sales for the November-December holiday season look set to rise 4.1 percent to $586.1 billion this year after a 5.6 percent increase in 2011, according to a National Retail Federation forecast.

"Retailers are going to be pretty challenged this year in trying to get beyond all this," Cohen said, referring to a string of events this holiday season that have weighed on U.S. shoppers including the hurricane, gridlock in Washington and a recent shooting at an elementary school in Connecticut.

NRF sees 2013 retail sales rising about 2 to 2.5 percent if the fiscal cliff is averted. If not, sales would be essentially flat for the year, the trade group estimated in a study with Macroeconomic Advisers.

(Editing by Matthew Lewis)

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U.S. House Speaker John Boehner (R-OH) speaks to the media on a ''fiscal cliff'' on Capitol Hill in Washington, December 20, 2012.

WASHINGTON | Fri Dec 21, 2012 7:38am EST

WASHINGTON (Reuters) - Now that House Speaker John Boehner's "Plan B" for addressing the "fiscal cliff" has crashed and burned, the top U.S. Republican appears to have two remaining options - wash his hands of the entire matter or negotiate a compromise with Democrats that could abandon scores of his fellow Republicans.

The Republican rank and file and Democrats may face an equally stark choice: work together for a change, or plunge together off the cliff.

Boehner tried to ram a "fallback" plan through the House on Thursday - a relatively tiny tax increase on millionaires and billionaires - and failed. His rambunctious Republicans, who see opposition to all tax hikes as a matter of bedrock principle and of political survival, refused to go along.

President Barack Obama and his Democrats who control the Senate take the opposite view - tax hikes on the wealthy are a condition for their support of a fiscal cliff bill. If there is to be a resolution it will largely depend on an improbable scenario - Democrats in the House teaming up with less militant Republicans to back away from the fiscal cliff.

Compromise has been out of style in recent years, and many think it could require some prodding from the markets.

"At this point, I only see one route to avoiding the cliff, a replay of the TARP debacle in 2008," said George Washington University's Sarah Binder, an expert on Congress. In September 2008, the House defeated the bank bailout bill and the market collapsed, prompting a terrified lawmakers to reconsider and pass it.

"In this case, a harsh market and public reaction would be needed to force the hand of the speaker to negotiate a deal that can pass with Democratic votes," she said.

"If the GOP takes a beating in the headlines and the market tanks, I suspect a good number of rank-and-file GOP will demand that the speaker go back to the table. But absent whiplash from the markets and voters, I suspect it's over the cliff we go."

For the time being - or at least the 11 days until the automatic tax hikes and spending cuts are triggered - the House is in disarray and no deal to avert the fiscal cliff is in sight.

While the House in recess for a Christmas break that is likely to last at least until December 27, Boehner must decide whether to move any further in Obama's direction and agree to tax increases much higher than his own proposal that so angered his fellow Republicans on Thursday.

The Ohio Republican also might have to settle for fewer long-term spending cuts than he had hoped for.

WALK ON BY

Boehner's only other apparent option - one that he hinted at late on Thursday following the collapse of his bill - would be to walk away and leave the problem on Democrats' doorstep.

"Now it is up to the president to work with Senator Reid on legislation to avert the fiscal cliff," Boehner said in a statement referring to Senate Majority Leader Harry Reid.

But in a closed-door session before that statement, Republican lawmakers said Boehner told them that he would at least try to work out something with Obama.

Either way, Boehner faces the possibility of having to battle not only Democrats for the next two years, but also his own membership on major bills.

"We have people (Republican lawmakers) who felt like they had to stand on the principle ... they couldn't vote for anything (that raised any taxes). I don't quite understand it," lamented Representative Buck McKeon, the powerful chairman of the House Armed Services Committee, who oversaw passage of a $633 billion defense spending bill for 2013.

"If you don't have the votes, you can't move forward," McKeon said of the Plan B fiscal cliff bill.

Representative Steven LaTourette, a moderate Republican who is retiring at year's end, told reporters that Thursday's legislative defeat - and public relations failure - will not stop Boehner from being re-elected House Speaker on January 3. "Name one member who opposes him," LaTourette challenged reporters.

Firing Boehner, LaTourette said, would be "like saying the superintendent of the insane asylum should be discharged because he couldn't control the crazy people."

Nonetheless, two years into his stint as Speaker, Boehner still has not found the right formula for corralling his Republican majority, especially the Tea Party conservatives whose victories in 2010 helped Republicans wrest control of the House. However, he has taken steps in recent weeks to punish a handful of uncooperative Republicans.

Since unveiling his plan on Tuesday, several conservative groups, including the Heritage Foundation, waged a spirited effort to kill the measure.

Those groups, LaTourette said, had been "making their phone calls, and they're bombing people" with pressure to vote against the bill. That, he added, "makes people nervous" about primary election challengers being recruited in 2014 by outside groups to defeat Republican lawmakers who vote for any tax increase.

"I doubt his speakership is in trouble," said American Enterprise Institute scholar Norm Ornstein, "The big question is whether, and when, he is willing to bring up a bill that will require more Democrats than Republicans to pass."

(Reporting By Richard Cowan. Editing by Fred Barbash)

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