Tag Archives: LATAM

Embattled George Santos defies New York Republicans’ call to step down

WASHINGTON, Jan 11 (Reuters) – Embattled U.S. Representative George Santos said he had no plans to heed fellow New York Republicans’ calls to step down, a plea they made on Wednesday due to what they called “lie after lie after lie” about his career and history.

Top House of Representatives Republican Kevin McCarthy said he had no intention of pressuring Santos, part of his narrow 222-212 majority, despite the public plea by more than a dozen top Republicans, many of them from Santos’ suburban New York City district.

The New York Republicans made their plea at a news conference two days after a nonpartisan watchdog accused Santos of breaking campaign finance laws in a filing with the Federal Election Commission.

“It’s just lie after lie after lie. It became a pattern,” said Joseph Cairo Jr., the party chairman in Nassau County.

Republican Representative Nick Langworthy from western New York and Representative Anthony D’Esposito, who represents a district next to that of Santos, were also among those calling on the first-term congressman to step down.

“I join with my colleagues in saying that George Santos does not have the ability to serve here in the House of Representatives and should resign,” he said.

Santos rejected those calls in remarks to reporters at the Capitol and elaborated on his plans on Twitter.

“I was elected to serve the people of #NY03 not the party & politicians, I remain committed to doing that and regret to hear that local officials refuse to work with my office,” he wrote, referring to the congressional district he represents.

McCarthy on Wednesday told reporters that voters, not lawmakers, should choose who represents them.

“In America today, you’re innocent until proven guilty,” he said.

‘SIMPLY TRAGIC AND OUTRAGEOUS’

Santos, who represents much of Nassau County, as well as a small slice of New York City, has admitted to fabricating much of his resume.

He won his November race over Democrat Robert Zimmerman by a margin of 7.5 percentage points.

But his victory was quickly overshadowed by media reports indicating that the persona he presented to voters was largely a work of fiction.

Among other claims, Santos said he had degrees from New York University and Baruch College, despite neither institution having any record of him attending. He claimed to have worked at Goldman Sachs and Citigroup, which was also untrue.

He also falsely said that he was Jewish and that his grandparents escaped the Nazis during World War Two.

“For him to make up this story that his parents were Holocaust survivors is beyond the pale. It is simply tragic and outrageous and disgusting,” Nassau County Executive Bruce Blakeman said. “He is a stain on the House of Representatives.”

During the news conference, officials said they would direct Santos’ constituents to Representative D’Esposito in some cases, who had agreed to help residents of Santos’ district.

Two House Democrats on Tuesday referred the matter to the House ethics committee this week. The local district attorney has said her office is investigating Santos.

If Santos were to resign, his district could make for a competitive special election.

He won his 2022 election with 52% of the vote to Democrat Zimmerman’s 45%, handing Republicans a seat formerly held by Democrat Thomas Suozzi.

The 2022 election took place with newly-drawn district boundaries. Had those lines been in place in the 2020 presidential election, Democratic President Joe Biden would won the district by eight percentage points.

Under New York and federal law, the seat would be vacant until a special election is held, which would take roughly three months.

Reporting by Gram Slattery and Moira Warburton, additional reporting by Jason Lange and Doina Chiacu; Editing by Scott Malone, Mark Porter and Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

Gram Slattery

Thomson Reuters

Washington-based correspondent covering campaigns and Congress. Previously posted in Rio de Janeiro, Sao Paulo and Santiago, Chile, and has reported extensively throughout Latin America. Co-winner of the 2021 Reuters Journalist of the Year Award in the business coverage category for a series on corruption and fraud in the oil industry. He was born in Massachusetts and graduated from Harvard College.

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Failed crypto exchange FTX has recovered over $5 bln, attorney says

  • FTX valued a year ago at $32 bln
  • Over $8 billion in FTX customer funds missing
  • Plan to sell FTX affiliates presented in court

NEW YORK/WILMINGTON, Del., Jan 11 (Reuters) – Crypto exchange FTX has recovered more than $5 billion in liquid assets but the extent of customer losses in the collapse of the company founded by Sam Bankman-Fried is still unknown, an attorney for the company told a U.S. bankruptcy court on Wednesday.

The company, which was valued a year ago at $32 billion, filed for bankruptcy protection in November and U.S. prosecutors accused Bankman-Fried of orchestrating an “epic” fraud that may have cost investors, customers and lenders billions of dollars.

“We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities,” Andy Dietderich, an attorney for FTX, told U.S. Bankruptcy Judge John Dorsey in Delaware at the start of Wednesday’s hearing.

Dietderich also said the company plans to sell nonstrategic investments that had a book value of $4.6 billion.

However, Dietderich said the legal team is still working to create accurate internal records and the actual customer shortfall remains unknown. The U.S. Commodities Futures Trading Commission has estimated missing customer funds at more than $8 billion.

Dietderich said the $5 billion recovered does not include assets seized by the Securities Commission of the Bahamas, where the company was headquartered and Bankman-Fried resided.

FTX’s attorney estimated the seized assets were worth as little as $170 million while Bahamian authorities put the figure as high as $3.5 billion. The seized assets are largely comprised of FTX’s proprietary and illiquid FTT token, which is highly volatile in price, Dietderich said.

ASSET SALES

FTX could raise additional funds in the coming months for the benefit of customers after Dorsey approved FTX’s request for procedures to explore sales of affiliates at Wednesday’s hearing.

The affiliates — LedgerX, Embed, FTX Japan and FTX Europe — are relatively independent from the broader FTX group, and each has its own segregated customer accounts and separate management teams, according to FTX court filings.

The crypto exchange has said it is not committed to selling any of the companies, but that it received dozens of unsolicited offers and plans to hold auctions beginning next month.

The U.S. Trustee, a government bankruptcy watchdog, opposed selling the affiliates before the extent of the alleged FTX fraud is fully investigated.

In part to preserve the value of its businesses, FTX also sought Dorsey’s approval to keep secret 9 million FTX customer names. The company has said that privacy is needed to prevent rivals from poaching users but also to prevent identity theft and to comply with privacy laws.

Dorsey allowed the names to remain under wraps for only three months, not six months as FTX wanted.

“The difficulty here is that I don’t know who’s a customer and who’s not,” Dorsey said. He set a hearing for Jan. 20 to discuss how FTX will distinguish between customers and said he wants FTX to return in three months to give more explanation on the risk of identity theft if customer names are made public.

Media companies and the U.S. Trustee had argued that U.S. bankruptcy law requires disclosure of creditor details to ensure transparency and fairness.

In addition to selling affiliates, a company lawyer on Wednesday said FTX will end its 19-year $135 million sponsorship deal with the NBA’s Miami Heat and a 7-year about $89 million deal with the League of Legends video game.

FTX’s founder, Bankman-Fried, 30, was indicted on two counts of wire fraud and six conspiracy counts last month in Manhattan federal court for allegedly stealing customer deposits to pay debts from his hedge fund, Alameda Research, and lying to equity investors about FTX’s financial condition. He has pleaded not guilty.

Bankman-Fried has acknowledged shortcomings in FTX’s risk management practices, but the one-time billionaire has said he does not believe he is criminally liable.

In addition to customer funds lost, the collapse of the company has also likely wiped out equity investors.

Some of those investors were disclosed in a Monday court filing, including American football star Tom Brady, Brady’s former wife supermodel Gisele Bündchen and New England Patriots owner Robert Kraft.

Reporting by Dietrich Knauth in New York and Tom Hals in Wilmington, Del.; Editing by Alexia Garamfalvi, Mark Porter, Matthew Lewis and Anna Driver

Our Standards: The Thomson Reuters Trust Principles.

Tom Hals

Thomson Reuters

Award-winning reporter with more than two decades of experience in international news, focusing on high-stakes legal battles over everything from government policy to corporate dealmaking.

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Western Europe’s first satellite launch mission takes off

  • Converted Boeing 747 takes off from Newquay, Cornwall
  • Rocket will be deployed over the Atlantic in next hour
  • ‘Start Me Up’ mission will deploy nine small satellites

NEWQUAY, England, Jan 9 (Reuters) – Virgin Orbit’s “Cosmic Girl” carrier aircraft took off from Newquay’s spaceport in Cornwall, southwest England on Monday night, the initial stage of Western Europe’s first ever satellite launch.

The modified Boeing 747 with a rocket under its wing took to the air and then soared out over the Atlantic Ocean, where after an hour it will release a rocket at about 35,000 feet (10,668 meters).

More than 2,000 space fans cheered when the aircraft left the runway.

The “horizontal” launch has catapulted the resort in southwest England – population 20,000 and famous for its reliable Atlantic waves – into the limelight as Western Europe’s go-to destination for small satellites.

Virgin Orbit (VORB.O), part-owned by British billionaire Richard Branson, said nine satellites would be deployed into lower Earth orbit (LEO) from its LauncherOne rocket in its first mission outside its United States base.

($1 = 0.8213 pounds)

Additional reporting by Sarah Young; editing by Nick Macfie and Sandra Maler, Kate Holton

Our Standards: The Thomson Reuters Trust Principles.

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Brazil police amass at camp of Bolsonaro’s backers after capital stormed

  • Lula promises justice for those behind Sunday’s riots
  • Bolsonaro, in Florida, says protesters ‘crossed the line’
  • Biden and other world leaders condemn ‘outrageous’ act
  • Lula took office in January after narrow October win

BRASILIA, Jan 9 (Reuters) – Brazilian police amassed at a camp of supporters of far-right former President Jair Bolsonaro in the capital on Monday, a day after rioters launched the worst attack on Brazil’s state institutions since its return to democracy in the 1980s.

After thousands of Bolsonaro’s backers stormed Congress, the Supreme Court and the presidential palace on Sunday, hundreds of police in riot gear and some on horseback deployed at the pro-Bolsonaro camp outside Brasilia’s army headquarters, while soldiers in the area withdrew, Reuters witnesses said.

President Luiz Inacio Lula da Silva, Bolsonaro’s leftist rival who took office on Jan. 1 after a narrow October election win, promised to bring those responsible for the violence to justice, after demonstrators broke windows and furniture, destroyed art work and stole guns and artifacts.

Lula, who was back at work at the Planalto presidential palace, planned to meet his defense minister and armed forces commanders to discuss the attacks that recalled the assault on the U.S. Capitol two years ago by backers of former President Donald Trump.

U.S. President Joe Biden joined other world leaders in condemning Sunday’s riots, calling them “outrageous”, while Bolsonaro who is now in Florida denied inciting his supporters and said the rioters had “crossed the line”.

Pro-Bolsonaro truckers, who have caused havoc on Brazil’s highways for weeks, held more protests through the night.

A toll road operator for the BR 163 highway that cuts through Brazil’s top grain producing state Mato Grosso reported several blockades that were cleared by dawn. Police said blockages on another highway in Parana state were also cleared.

Supreme Court Justice Alexandre de Moraes ordered the governor of Brasilia removed from office late on Sunday for 90 days over alleged security failings and demanded that social media platforms Facebook, Twitter and TikTok block accounts of users spreading anti-democratic propaganda.

Facebook parent Meta (META.O) said on Monday it was removing content supporting or praising the weekend actions. Telegram, TikTok, Twitter and YouTube did not immediately respond to requests for comment.

‘FASCIST’ ASSAULT

Lula, a former union organizer who was also president from 2003 to 2010, said the local militarized police force that reports to Brasilia Governor Ibaneis Rocha, a former Bolsonaro ally, did nothing to stop the protesters advancing.

Lula decreed federal intervention of public security in the capital and promised exemplary punishment for the leaders of the “fascist” assault that was aimed at provoking a military coup that could restore Bolsonaro to power.

“All the people who did this will be found and punished,” Lula told reporters from Sao Paulo State.

He blamed Bolsonaro for inflaming his supporters after a campaign of baseless allegations about election fraud after the end of his rule marked by divisive nationalist populism.

From Florida, where Bolsonaro flew 48 hours before his term ended, the former president rejected the accusation. He said on Twitter that peaceful demonstrations were democratic but the invasion of government buildings “crossed the line.”

The assault raised questions among Lula’s allies about how security forces in the capital were so unprepared for rioters who had discussed their plans on social media for days.

The occupation of the government buildings had been planned for at least two weeks by Bolsonaro’s supporters in groups on messaging platforms such as Telegram and Twitter, yet there was no move by security forces to prevent the attack, called by one group “the seizure of power by the people.”

Police retook the damaged public buildings in the futuristic capital after three hours and dispersed the crowd with tear gas.

Justice Minister Flavio Dino said 200 demonstrators had been arrested, although that number is expected to rise.

Dino said investigations aimed to uncover who financed the several hundred buses that brought Bolsonaro’s supporters to Brasilia and question the suspended Brasilia governor.

Bolsonaro faces legal risks from several investigations before the Supreme Court in Brazil and his future in the United States, where he traveled on a visa issued only to sitting presidents, is in question.

“Bolsonaro should not be in Florida,” Democratic Congressman Joaquin Castro said on CNN. “The United States should not be a refuge for this authoritarian who has inspired domestic terrorism in Brazil. He should be sent back to Brazil.”

Live: Bolsonaro supporters camped outside military HQ

Reporting by Lisandra Paraguassu, Gabriel Stardgarter, Gabriel Araujo, Anthony Boadle and Sergio Queiroz; Editing by Brad Haynes and Edmund Blair

Our Standards: The Thomson Reuters Trust Principles.

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Bolsonaro backers sack Brazil presidential palace, Congress, Supreme Court

BRASILIA, Jan 8 (Reuters) – Supporters of Brazil’s far-right former President Jair Bolsonaro invaded the country’s Congress, presidential palace and Supreme Court on Sunday, in a grim echo of the U.S. Capitol invasion two years ago by fans of former President Donald Trump.

Leftist President Luiz Inacio Lula da Silva, who defeated Bolsonaro in an October election, announced a federal security intervention in Brasilia lasting until Jan. 31 after capital security forces were initially overwhelmed by the invaders.

Lula, who was only inaugurated on Jan. 1, blamed Bolsonaro for inflaming his supporters after a campaign of baseless allegations about potential election fraud following the end of his rule marked by divisive nationalist populism.

The president’s allies also raised questions about how public security forces in the capital Brasilia were so unprepared and easily overwhelmed by rioters who had been planning on social media for days to gather for weekend demonstrations.

“These vandals, who we could call … fanatical fascists, did what has never been done in the history of this country,” said Lula in a press conference during an official trip to Sao Paulo state. “All these people who did this will be found and they will be punished.”

The capital invaders left a trail of destruction in their wake, throwing furniture through the smashed windows of the presidential palace, flooding parts of Congress with a sprinkler system and ransacking ceremonial rooms in the Supreme Court.

The sight of thousands of yellow-and-green clad protesters running riot in the capital capped months of tension following the Oct. 30 vote.

Bolsonaro, an acolyte of Trump’s who has yet to concede defeat, peddled the false claim that Brazil’s electronic voting system was prone to fraud, spawning a violent movement of election deniers.

“This genocidist … is encouraging this via social media from Miami,” Lula said, referring to Bolsonaro. “Everybody knows there are various speeches of the ex-president encouraging this.”

Bolsonaro was silent for nearly six hours about the chaos in Brasilia before posting on Twitter that he “repudiates” Lula’s accusations against him.

The former president, who has rarely spoken in public since losing the election, also said peaceful demonstrations are part of democracy but invading and damaging public buildings “crosses the line.” He flew to Florida 48 hours before the end of his mandate and was absent from Lula’s inauguration.

The violence in Brasilia could amplify the legal risks Bolsonaro faces. It also presents a headache for U.S authorities as they debate how to handle his stay in Florida. Prominent Democratic lawmakers said the United States could no longer grant Bolsonaro “refuge” in the country.

The Bolsonaro family lawyer, Frederick Wassef, did not respond to a request for comment.

By 6:30 p.m. local time (2130 GMT), some three hours after initial reports of the invasion, security forces had managed to retake the capital’s most iconic three buildings.

Brasilia Governor Ibaneis Rocha, a longtime Bolsonaro ally facing tough questions after Sunday’s security lapses, said on Twitter more than 400 people had been arrested and authorities were working to identify more.

The invasions were condemned by leaders around the world.

U.S. President Joe Biden called the events an “assault on democracy and on the peaceful transfer of power,” adding that Brazil’s democratic institutions had full U.S. support.

“Using violence to attack democratic institutions is always unacceptable,” U.S. Secretary of State Antony Blinken wrote on Twitter. “We join Lula in urging an immediate end to these actions.”

Far from the capital, Brazilian industries were on alert for a fresh round of unrest from Bolsonaro supporters, whose post-election highway blockades have disrupted grains shipments and meatpacking operations in recent months.

State-run oil company Petrobras stepped up security at its refineries, in a cautionary measure after attack threats against assets including Brazil’s biggest fuel plant, three company officials said, declining to be named as information is private.

Petroleo Brasileiro SA (PETR4.SA), as the company is formally known, said in a statement that all its assets and refineries are operating normally.

Analysts warned the unrest could trigger more volatility in Brazil’s financial markets, which have swung sharply in recent weeks on doubts about how Lula will reconcile big spending promises with stretched public finances.

JUDGES DENOUNCE “TERRORISTS”

The Supreme Court, whose crusading Justice Alexandre de Moraes has been a thorn in the side of Bolsonaro and his supporters, was ransacked by the invaders, according to images from social media showed protesters clubbing security cameras and shattering the windows of the modernist building.

Both Moraes and the court’s Chief Justice Rosa Weber vowed punishment for the “terrorists” who had attacked the country’s democratic institutions. The heads of both houses of Congress denounced the attacks publicly and moved up plans to fly back to the capital, according to people familiar with the matter.

Rocha, the Brasilia governor, said he had fired his top security official, Anderson Torres, previously Bolsonaro’s justice minister. The solicitor general’s office said it had filed a request for the arrest of Torres.

Torres told website UOL he was with his family on holiday in the United States and had not met with Bolsonaro. UOL reported he was in Orlando, where Bolsonaro is now staying.

“Vandalism and ransacking will be combatted with the rigor of the law,” Anderson tweeted on Sunday afternoon, adding he had directed police in the capital to restore order urgently.

On Saturday, with rumors of a confrontation brewing in Brasilia, Justice Minister Flávio Dino authorized the deployment of the National Public Security Force. On Sunday, he wrote on Twitter, “this absurd attempt to impose the will by force will not prevail.”

In Washington in 2021, Trump supporters attacked police, broke through barricades and stormed the Capitol in a failed effort to prevent congressional certification of Joe Biden’s 2020 election victory.

Trump, who has announced a third bid for the presidency, in 2024, had pressured his vice president, Mike Pence, not to certify the vote, and he continues to claim falsely that the 2020 election was stolen from him through widespread fraud.

Reporting by Adriano Machado, Anthony Boadle, Lisandra Paraguassu, Ricardo Brito, Peter Frontini, Gabriel Araujo; Writing by Gabriel Stargardter; Editing by Brad Haynes, Daniel Wallis and Lincoln Feast.

Our Standards: The Thomson Reuters Trust Principles.

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One dead, 57 injured in accident on Mexico City metro

MEXICO CITY, Jan 7 (Reuters) – At least one person was killed and 57 were injured in a train collision on Mexico City’s metro early on Saturday, local authorities said.

The person killed in the morning accident was a young woman, city security head Omar Garcia told local media Grupo Milenio.

Garcia shared an updated list of the injured later on Saturday, and the city’s mayor, Claudia Sheinbaum, said on Twitter that she was at the site.

Four others who were trapped on one wagon on Line 3 were rescued and are in good health, Garcia said earlier.

A variety of accidents have taken place on the metro in recent years. The most serious was the May 2021 collapse of a rail overpass on Line 12 that killed 26 people and injured more than 60.

Maintenance shortcomings were identified as one of that accident’s causes.

Reporting by Lizbeth Diaz in Mexico City;
Writing by Julia Symmes Cobb;
Editing by Leslie Adler

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At least 29 killed in Mexico capture of Chapo’s son

MEXICO CITY, Jan 6 (Reuters) – Nineteen suspected gang members and 10 military personnel were killed in a wave of violence surrounding the arrest of Mexican drug cartel boss Ovidio Guzman in the northern state of Sinaloa, Defense Minister Luis Cresencio Sandoval said on Friday.

Mexican security forces captured Guzman, the 32-year-old son of jailed kingpin Joaquin “El Chapo” Guzman, in the early hours of Thursday morning, prompting hours of unrest and shootouts with gang members, the minister said.

Guzman was extracted by helicopter from the house where he was caught and flown to Mexico City, before being taken to a maximum security federal prison, Sandoval added.

The arrest spurred the powerful Sinaloa Cartel – once headed by El Chapo himself – to go on a rampage, setting vehicles on fire, blocking roads, and fighting security forces in and around Culiacan, the capital of Sinaloa.

Twenty-one other people were arrested during Thursday’s operations, Sandoval told a news conference, adding there were no reports of any civilian deaths.

President Andres Manuel Lopez Obrador said there were no immediate plans to extradite Ovidio to the United States, where his father is in a maximum security prison after being extradited in 2017 and found guilty in a New York court.

“The elements (of the case) have to be presented and the judges in Mexico decide,” the president said. “It is a process…It is not just the request.” No U.S forces had assisted in Ovidio’s capture, Lopez Obrador said.

An enhanced security presence will now remain in place in Sinaloa, on Mexico’s Pacific coast, to protect the public, with an additional 1,000 military personnel traveling to the region today, Sandoval said.

Passengers on an Aeromexico passenger flight at Culiacan airport crouched low below their seats as shots rung out around the runway on Thursday.

“As we were accelerating for take-off, we heard gunshots very close to the plane, and that’s when we all threw ourselves to the floor,” passenger David Tellez said. Aeromexico said one of its plane was hit by gunfire at Culiacan but that no-one was hurt.

The airport was due to reopen later on Friday after being closed due to the violence.

In 2019, a failed operation to arrest Ovidio ended in humiliation for Lopez Obrador’s government. At the time, security forces briefly detained Ovidio, triggering a violent backlash from cartel loyalists and leading authorities to quickly release him to stave off the threat of further retribution from his henchmen.

His latest capture comes before a North American leaders’ summit in Mexico City next week, which U.S. President Joe Biden will attend. Cooperation over security is due to be on the agenda.

THE EXTRADITION QUESTION

The United States has sought Guzman’s extradition for years.

In 2021, the State Department announced a $5 million reward for information leading to his arrest and conviction.

Guzman, known by the nickname “The Mouse,” has been charged in the United States with conspiracy to traffic cocaine, methamphetamine and marijuana into the United States. The State Department said he oversaw methamphetamine labs in Sinaloa responsible for producing “3,000 to 5,000 pounds” of the drug per month.

The State Department also said information indicated he had ordered multiple murders, including that of a popular Mexican singer who had refused to perform at his wedding.

Surging flows of the synthetic opioid fentanyl into the United States, where it has fueled record overdose deaths, have heightened pressure to capture Guzman.

The U.S. Drug Enforcement Administration considers the Sinaloa Cartel, along with one other gang, to be responsible for most of the fentanyl inside the United Sates.

Additional reporting by Dave Graham
Editing by Alistair Bell

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‘We threw ourselves to the floor’: Mexican passenger plane caught in cartel crossfire

MEXICO CITY, Jan 5 (Reuters) – “That’s an attack plane, Dad,” said one of David Tellez’s young children as they spotted Mexican military aircraft touching down alongside their Aeromexico passenger plane early on Thursday.

Then the gunfire began.

“As we were accelerating for take-off, we heard gunshots very close to the plane, and that’s when we all threw ourselves to the floor,” Tellez said after the incident in the northern city of Culiacan.

Violence broke out on Thursday throughout Culiacan after the arrest of Ovidio Guzman, the son of the notorious drug lord known as El Chapo, and a senior member of the Sinaloa cartel.

Aeromexico said nobody on Tellez’s flight had been hurt. The Culiacan airport closed shortly after, as security forces patrolled the city, which was strewn with burned vehicles, attempting to contain the violent backlash.

Tellez, 42, was traveling with his wife and children, aged 7, 4 and 1, after spending Christmas with family.

He told Reuters he had reached the airport for his 8:24 a.m. flight without incident, despite encountering road blockades set up after overnight shootouts. Although Guzman’s arrest had not yet been confirmed, nervous security guards urged travelers to enter quickly.

“Authorities were not saying anything,” he said by phone.

Tellez hid in an airport bathroom with his family after hearing that gang members were in the airport. The rumor turned out to be false, and the Aeromexico travelers boarded quickly.

Yet, just as flight AM165 to Mexico City was about to take off, a succession of military planes landed on the airstrip.

Tellez took out his cellphone, recording several videos that show two large air force transport aircraft, smaller, fighter-like attack aircraft and military trucks on the tarmac. Then gunshots began to echo in the distance.

A video circulating on social media, appearing to capture the same incident, showed passengers crouching low below their seats as a child cried.

A flight attendant said the engine had been hit, triggering a leak. The crew directed passengers to disembark, moving them to a windowless waiting room in the airport.

It is not clear who was shooting at whom.

Tellez’s family plans to board another flight on Friday, but until then, is staying put.

“We prefer to stay at the airport until it’s safe to leave,” he said. “The city is worse. There is a lot of shooting and confusion.”

Reporting by Sarah Morland and Carolina Ruiz in Mexico City; Editing by Bradley Perrett

Our Standards: The Thomson Reuters Trust Principles.

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Benedict’s death clears path for Pope Francis to retire of old age in future

VATICAN CITY, Jan 3 (Reuters) – Six months ago Pope Francis brushed off speculation he was about to resign due to health problems, but even if he had toyed with the idea, he faced one major obstacle: there was already another ex-pope in retirement.

The death on Saturday of Benedict, who in 2013 became the first pontiff in 600 years to step down instead of reigning for life, should make any decision to step down easier on Francis and the Church, which has struggled enough with having “two popes”, let alone three – two retired and one reigning.

It could also prompt the current pontiff to review what happens to future popes who decide to shuffle away from office because of old age rather than holding on until they die.

Francis is now 86, one year older than Benedict was when he retired. Despite needing a cane and a wheelchair, he shows no sign of slowing down. Trips are planned for Africa this month and Portugal in August.

He has made it clear that he would not hesitate to step down someday if his mental or physical health impeded him from leading the 1.3 billion-member Church.

In an interview with Reuters on July 2, he dismissed rumours of imminent resignation. “It never entered my mind,” he said, also denying rumours among diplomats that he had cancer.

The previous month, the Catholic media world and some secular outlets were caught up in a frenzy of unsubstantiated reports and frivolous tweets speculating he would be out within a few months.

But as he now approaches the 10th anniversary of his election in March, and in four years his life’s ninth decade, the chances of resignation will increase.

Church law says a pope can resign but the decision must be without outside pressure, a precaution that harkens back to the centuries when European potentates influenced the papacy.

NO LONGER UNTHINKABLE

Now that longer life spans have made papal resignations no longer unthinkable, there have been repeated calls from Church leaders to regulate the role of former pontiffs, in part because of the confusion stemming wrought by two men wearing white living in the Vatican.

Francis told a Spanish newspaper last month that he did not intend to define the juridical status of popes emeritus, although he had previously indicated privately that a Vatican department could script such rules.

Australian Cardinal George Pell, a conservative who was close to Benedict, has written that while a retired pontiff could retain the title of “pope emeritus”, he should return to being a cardinal, and be known as “Cardinal (surname), Pope Emeritus”.

Pell also said a former pontiff should not wear white, as Benedict did, telling Reuters in a 2020 interview that it was important for Catholics to be clear that “there is only one pope”.

Academics and canon lawyers at Italy’s Bologna University who have studied the issue say the Church cannot risk even the appearance of having “two heads or two kings” and have proposed a set of rules.

They say a former pope should not return to being a cardinal, as Pell proposes, but be called “Bishop Emeritus of Rome”.

Francis told Reuters in July that is precisely what he would want to be called.

In that case there might not be any need for new legislation he would then be subject to existing rules covering retired bishops.

Existing rules say bishops emeritus should “avoid every attitude and relationship that could even hint at some kind of parallel authority to that of the diocesan bishop, with damaging consequences for the pastoral life and unity of the diocesan community”.

Although he had retired, Benedict wrote, gave interviews and, unwittingly or not, became a lightning rod for opponents of Pope Francis, either for doctrinal reasons or because they were loath to relinquish the clerical privileges the new pope wanted to dismantle.

Francis told Reuters that he would not stay in the Vatican or return to his native Argentina but live modestly in a home for retired priests in the Italian capital “because it’s my diocese”. He said he would want it to be near a large church so he could spend his final days hearing confessions.

Reporting by Philip Pullella
Editing by Raissa Kasolowsky

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Brazil markets tumble on Lula’s first full day in office

BRASILIA, Jan 2 (Reuters) – Brazilian markets delivered a withering verdict on leftist President Luiz Inacio Lula da Silva’s first full day in office on Monday, after he pledged to prioritize social issues and ordered a budget-busting extension to a fuel tax exemption.

Lula’s decision to extend the fuel tax exemption, which will deprive the Treasury of 52.9 billion reais ($9.9 billion) a year in fiscal income, was a stinging rebuke of his finance minister Fernando Haddad, a Workers Party (PT) loyalist who had said it would not be extended.

Haddad, who is seeking to dispel market fears that he might not maintain fiscal discipline, took office on Monday, pledging to control spending. “We are not here for adventures,” he said.

Markets seemed unconvinced.

The real currency lost 1.5% in value against the dollar in afternoon trading, while the benchmark Sao Paulo stock market index (.BVSP) ended 3.06% down. Shares of state-run oil company Petrobras (PETR4.SA) retreated nearly 6.45%.

In speeches delivered at his inauguration in Brasilia on Sunday, Lula promised that tackling hunger and poverty would be “the hallmark” of his third presidency after two previous stints running the country from 2003 to 2010.

Financial analysts said the start of Lula’s third presidency was in line with his campaign promises, and looked similar to earlier Workers Party policies that led to a deep recession.

Lula narrowly defeated far-right incumbent Jair Bolsonaro in October, swinging South America’s largest nation back on a left-wing track.

On Monday, Lula instructed ministers to revoke steps to privatize state companies taken by the previous administration, including studies to sell Petrobras, the Post Office and state broadcasting company EBC.

On Sunday, he signed a decree extending an exemption for fuels from federal taxes, a measure passed by his predecessor aimed at lowering their cost in the run-up to the election, but which will deprive the Treasury of 52.9 billion reais ($9.9 billion) a year in fiscal income.

The federal tax exemption for fuels will last one year for diesel and biodiesel and two months for gasoline and ethanol, a decree published in the official gazette showed on Monday.

Gabriel Araujo Gracia, analyst at Guide Investimentos, said Lula’s plans to increase social spending, expand the role of state banks and abolish a constitutionally mandated spending ceiling harked back to the worst days of Workers Party rule.

“The policies remind us of Dilma Rousseff’s government rather than Lula’s,” Gracia said, referring to Lula’s handpicked successor, who was impeached while in office. “Her policies led to Brazil’s worst recession since 1929.”

Lula, who lifted millions of Brazilians from poverty during his first two terms, criticized Bolsonaro for allowing hunger to return to Brazil, and wept during his speech to supporters on Sunday as he described how poverty had increased again.

Allies said Lula’s newfound social conscience was the result of his 580 days in prison, Reuters reported on Sunday.

Lula kicks off his third presidential term after persuading Congress to pass a one-year, 170 billion-reais increased social spending package, in line with his campaign promises.

“The package ended up being bigger than expected, with potential repercussions for public debt sustainability,” Banco BTG Pactual said in a research note.

Lula spent his first day in office meeting with more than a dozen heads of state who attended his inauguration.

The meetings started with the king of Spain, and continued with South American presidents, among them the leftist leaders of Argentina, Chile and Bolivia, as well as representatives from Cuba and Venezuela, and Vice President Wang Qishan of China.

On Twitter, Lula said he had received a letter from Chinese leader Xi Jinping expressing a desire to increase cooperation between the two countries.

“China is our biggest trading partner, and we can further expand relations between our countries,” Lula added.

The new president is also set to attend the wake of Brazilian soccer star Pele, who died on Thursday at 82 after battling colon cancer.

Lula will pay his respects and pay tribute to Pele and his family on Tuesday morning, the president’s office said in a statement.

($1 = 5.3633 reais)

Reporting by Anthony Boadle, Marcela Ayres and Gabriel Araujo; Editing by Matthew Lewis and Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

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