Mexican paper: Cops fighting over drugs led to airport shootout


A June 25 shootout at this capital's airport that left three police officers dead began with an argument among cops over a packet of cocaine, a leading Mexican newspaper said.

The official account maintains that three Federal Police officers under investigation for drug trafficking killed three fellow officers who were about to arrest them at Benito Juarez International Airport.

Reforma, however, cites several unnamed witnesses who said the shooting arose from a dispute among six police officers over a packet of cocaine left behind by a traveler.

The head of the Federal Police division of Regional Security, Luis Cardenas Palomino, called Reforma's story a "disgrace" and said authorities had no evidence or testimony pointing to "any argument" among the officers. The three suspected dirty cops the government blames for the killings remain at large.




Yield on Spain's benchmark bond nears 7 pct on ECB inaction


The yield on Spain's benchmark 10-year bond was nearly 7 percent at the close of trading on Friday, a level economists regard as unsustainable, while the country's risk premium rose to 563 basis points.

The refusal of the European Central Bank to buy sovereign debt or adopt new stimulus measures beyond Thursday's highly anticipated move to reduce its main interest rate to a record low 0.75 percent triggered the spike in the risk premium, according to analysts consulted by Efe.

The risk premium is the extra return investors demand on Spain's 10-year note compared to equivalent safe-haven German debt.

The yield on Spain's benchmark bond has not closed above 7 percent since June 19, prior to a euro-zone summit in which regional heads of state and government agreed to allow the ECM permanent rescue fund - due to come online this month - to directly recapitalize banks and buy sovereign debt on secondary markets.




Peruvian police rescue 10 kids from guerrillas


Police rescued 10 minors who had been forcibly recruited by a guerrilla group in a conflictive region of southern Peru, President Ollanta Humala said.

"Ten children have been recovered. There are no casualties. The operation was carried out with great care to avoid the spilling of blood," he told Canal N television.

A remnant of the Shining Path rebel group that operates in the Valley of the Apurimac and Ene rivers snatches kids and tries to mould them into "little pioneers" of the movement, according to media accounts.

"They have been abducting children of the rural population for training and to cover their backs through this extortion and to assure themselves of the forced collaboration (of the residents)," Humala said of the guerrillas.




Mexican court strikes down Telmex bid for pay TV license


Mexico's government has secured a court ruling that prevents fixed-line giant Telmex from entering the cable TV market.

"This sentence is firm and not subject to appeal," the Communications and Transportation Secretariat's head of legal affairs, Gerardo Sanchez Henkel, told Efe.

He said the court denied Telmex's request for an injunction against the secretariat's May 26, 2011, decision to deny the company the license on grounds it was providing substandard interconnection service to competitors in violation of Mexico's 2006 Convergence Agreement.

The legal dispute dates back to December 2009, when Telmex - controlled by Mexican multi-billionaire Carlos Slim - sued to enter the TV market after telecoms regulator Cofetel failed to respond in time to its a request for a license.




Official tally confirms Peña Nieto as winner of Mexico vote


Enrique Peña Nieto, the candidate of the Institutional Revolutionary Party, or PRI, won Mexico's July 1 presidential election with 38.21 percent of the vote, electoral authorities said.

Leftist Andres Manuel Lopez Obrador finished second, with 31.59 percent, followed by the standard-bearer of the governing conservative National Action Party, Josefina Vazquez Mota, who garnered 25.41 percent of the vote.

National Action, in power since December 2000, said earlier this week that despite problems with the process, it will respect the outcome of the elections.

Lopez Obrador, however, said he plans to formally challenge the outcome, based on credible allegations of vote-buying by the PRI, which became notorious for electoral chicanery during its 1929-2000 hammerlock on the presidency.




1 Dead in clash between Bolivian police, kidnappers of miners


Clashes between Bolivian police and Indians who kidnapped five employees of a mining company in the southwestern province of Potosi left one dead and eight wounded, while one officer was being detained, officials said.

"There's one person dead. We have four indigenous people who have significant injuries. We also are aware that there are four police who suffered some type of injury and that there's a policeman detained there," the ombud for Potosi, Rene Arroyo, told Bolivision TV.

The incident occurred Thursday 350 kilometers (217 miles) south of La Paz near the Mallku Khota mine, which is operated by the Bolivian unit of Canada's South American Silver. Indians want to expel that company and exploit the deposit themselves.

President Evo Morales' government on Thursday sent nearly 400 police and a delegation headed by Labor Minister Daniel Santalla to Potosi to negotiate the release of the kidnap victims.