America
Mexico, Nicaragua cut ties with Ecuador after embassy raid
Mexico has severed diplomatic ties with Ecuador and vowed to take the country to international court after police broke into its embassy in the capital, Quito, and detained a former Ecuadorian vice-president who had sought refuge there after being convicted of corruption.
The right-wing government of President Daniel Noboa ordered police to enter the embassy building after Mexico’s social democratic government granted asylum to Jorge Glas, Ecuador’s vice president from 2013-18, who was recently sentenced to 14 years in prison.
Police entered the embassy late on Friday night as heavily armed soldiers stood guard outside. Video posted on social media showed two black police jeeps leaving the diplomatic compound with sirens blaring and Mexico’s acting ambassador, Roberto Canseco, shouting. “No, no, no, this is a violation, this is not possible!” Canseco said, and was forced to the ground by police.
Canseco later told reporters: “This is absolutely unacceptable. They hit me, they pushed me to the ground. I physically tried to stop them from getting in. They searched the Mexican embassy in Quito like criminals,” he said.
Mexican President Andrés Manuel López Obrador accused Ecuador of ‘flagrant violations of international law and Mexican sovereignty’ and said he had ordered the immediate suspension of diplomatic relations.
Mexican minister: Even dictator Pinochet did not dare
The 1961 Vienna Convention guarantees the inviolability of diplomatic premises, stating that ‘representatives of the receiving State may not enter them without the consent of the head of mission’. Even under military dictatorships, forced entry into an embassy by the host government was almost unheard of.
In Latin America, there has not been a serious attack on a national embassy since the 1980s. In 1980, the Spanish embassy in Guatemala City was burned down, killing 37 people, and the Colombian guerrilla group M-19 took diplomats hostage in the Dominican Republic’s embassy in Bogotá.
Mexican Foreign Minister Alicia Bárcena thanked the returning diplomats for “protecting our embassy in Quito, even at the risk of their own physical health”.
“Not even the dictator Pinochet dared to enter the Mexican embassy in Chile. They entered by force and without authorisation and physically attacked (the diplomats). We condemn this in the strongest possible terms,” he said.
Bárcena said he would take the case to the International Court of Justice ‘to denounce Ecuador’s responsibility for violations of international law’. Several Mexican diplomats were injured in the raid, the minister added.
Ecuadorian leader defends raid
Ecuadorian leader Noboa argued that the immunity and privileges granted to the diplomatic mission hosting Jorge Glas had been ‘abused’ and that his political asylum was ‘contrary to the legal framework’.
“Ecuador is a sovereign country and we will not allow any criminal to go unpunished,” Noboa added.
Glas was transferred on Saturday morning to a maximum security prison known as ‘The Rock’ in Ecuador’s main port city of Guayaquil, according to a statement from the country’s prison service. Videos posted on social media earlier showed him being transported in an armoured convoy from a detention centre in Quito.The dispute between Ecuador and Mexico has been ongoing since Glas took refuge in the embassy in December.He fled to the embassy after prosecutors published chat messages suggesting that a prominent Ecuadorian drug trafficker had been released early from a long prison sentence in 2022 after bribing a judge.
Glas was part of Correa’s team
López Obrador angered the Ecuadorian government this week by suggesting that Noboa’s election victory over a leftist opponent last year was due to his opponent being falsely accused of murdering another candidate during the campaign. Ecuador decided to expel the Mexican ambassador in response to the comments. Glas was Rafael Correa’s vice-president and was backed by Luisa González de Correa, who lost to Noboa last year. In a statement on Saturday, González called on Noboa to resign. Rafael Correa took refuge in Belgium in 2018, due to an arrest warrant issued against him on corruption charges.
Ecuador’s right-wing President Noboa
Noboa, 36, enjoys growing popularity among Ecuadorians and strong support from Washington after declaring an all-out war on drug trafficking. Born into a wealthy banana-exporting family, Noboa has used emergency powers to put troops on the streets and sent the army to take control of gang-ridden prisons – tactics borrowed in part from El Salvador’s strongman leader Nayib Bukele. Last October, Noboa announced that Israel would help him design ‘maximum security’ prisons.
Last February, Noboa approved two military cooperation agreements with the United States, including one for joint naval operations.One of the agreements allows Ecuador to conduct joint operations with the United States to combat illegal activities such as drug trafficking, arms and human trafficking, and illegal fishing.
Noboa came to power in November after President Guillermo Lasso, who was facing impeachment for embezzlement, called for early elections. Noboa will remain in office until May 2025, the remainder of Lasso’s term.
After taking office, Noboa drafted an emergency tax bill that raised the value-added tax by three percentage points to 15% and gave the green light to thousands of environmental permits for oil and mining companies, measures he said would help boost both the economy and state coffers.The new president also planned to cut petrol subsidies and liberalise the labour market to make it more employer-friendly.The Noboa government also asked the US and EU to restructure the country’s foreign debt as part of its ‘war on gangs’.
Noboa made his first visit to Washington as president-elect. Focusing on securing financing mechanisms to implement his campaign promises, Noboa met with representatives of the International Monetary Fund (IMF), the World Bank, the Organisation of American States, the US Chamber of Commerce and the Inter-American Development Bank.
Latin American nations condemn Ecuador
Condemnations from Latin American governments were not slow in coming. The governments of Cuba, Venezuela and Honduras criticised Ecuador’s actions, while Nicaragua followed Mexico in cutting diplomatic ties with Quito on Saturday.
Brazil’s foreign ministry said the raid ‘sets a serious precedent and must be firmly rejected, whatever the justification for its implementation’. The right-wing governments of Argentina and Uruguay also criticised Ecuador.
Colombia’s leftist President Gustavo Petro said Glas’s right to political asylum had been ‘barbarically violated’ and called on regional multilateral organisations, including the Organisation of American States (OAS), to take up the case.
In a statement on Saturday, the OAS General Secretariat criticised Ecuador and said it ‘rejects any action that violates or threatens the inviolability of diplomatic mission premises’. The OAS also called for ‘dialogue between the parties to resolve their differences’.
In a statement on Saturday, the US State Department condemned any violation of the Vienna Convention and said both countries were ‘important partners’.
“We encourage the two countries to resolve their differences in accordance with international norms,” it said.
America
US Senate panel seeks records in Trump-linked crypto investigation
Richard Blumenthal, the ranking Democrat on the US Senate Permanent Subcommittee on Investigations (PSI), has requested documents from cryptocurrency exchange Binance, Tether, and crypto projects linked to President Donald Trump as part of inquiries into potential financial irregularities and conflicts of interest.
The documents were requested to be submitted by 4 January 2027.
Senators warned that they would resort to compulsory measures if the request was refused.
Entities sent document requests include World Liberty Financial and Fight Fight Fight LLC, both linked to President Trump’s family.
Blumenthal began examining the activities of these entities in May 2025 following reports that they may have engaged in transactions with foreigners under federal criminal investigation, attracted investments from foreign governments, and violated public ethics rules.
Notably, in 2026, it emerged that individuals close to the Abu Dhabi royal family had signed an agreement with the Trump family to purchase 49% of the shares in World Liberty Financial for $500 million.
The company, founded in September 2024 by the US President and his sons, launched a token called WLFI.
According to official disclosures, Trump made $800 million from this token alone.
Conversely, crypto analytics firm Nansen calculated, by tracking 1.48 million crypto wallets, that approximately two-thirds of those who invested in the token after its launch in January 2025 incurred losses.
While many retail investors spent several thousand dollars on purchases, the largest investors poured in millions of dollars.
Trump also launched his own memecoin, TRUMP, on 17 January 2025, prior to his inauguration.
Rising 10.6-fold in value within three days, the cryptocurrency’s market capitalisation reached $15 billion at its peak.
However, after those three days, the price entered a downturn, plunging by 97%.
Trump reported in his financial disclosure that he earned $635 million in income from sales of these memecoins.
In July 2026, Blumenthal held public hearings on the family crypto projects from which the President made $1.4 billion.
The losses suffered by TRUMP memecoin investors were also addressed during these hearings.
Cryptocurrency exchange Binance and Tether, which issues the largest stablecoin, USDT, are under scrutiny over their dealings with the Trump administration.
Lawmakers suspected conflicts of interest stemming from the exchange’s collaboration with World Liberty Financial.
Previously, a group of senators had demanded an inquiry into the terms of the presidential pardon granted to Binance founder Changpeng Zhao.
Separately, The New York Times reported that the United Arab Emirates (UAE) gaining access to American artificial intelligence chips coincided with a $2 billion investment by a UAE entity into Binance using USD1, a stablecoin issued by World Liberty Financial.
While this deal rapidly expanded the volume of tokens in circulation, it enabled Trump’s company to generate revenue from interest on government bonds where USD1 reserves were held.
Trump, for his part, described the report as slander.
America
US credit card debt hits record $1.29 trillion, New York Fed reports
Americans’ credit card debt reached a record $1.29 trillion in the third quarter, according to a new report published by the New York Fed.
Falling behind on credit card payments can trap struggling households in a cycle of fees, credit score downgrades, and increasingly expensive borrowing.
Although delinquency rates across the country have shown improvement, the latest figures indicate that financial distress is concentrated in lower-income communities.
Consumer credit card balances rose by $22 billion in the third quarter, representing an increase of 1.7%. This figure is $52 billion higher than it was a year earlier.
The figures are not adjusted for inflation, which may mean that part of the increase reflects rising prices rather than more borrowing in real terms.
Total household debt, which includes mortgages, student loans, and auto loans, rose by $334 billion in the third quarter to reach a record $19.1 trillion.
This total represents an increase of $5 trillion compared to 2019, just before the pandemic.
The volume of credit card balances falling into serious delinquency is declining, indicating some improvement in Americans’ ability to make their payments on time.
The rate of credit card debt transitioning into serious delinquency fell to 6.9% in the third quarter. However, this rate remains distinctly higher than the 5.2% recorded prior to the pandemic.
Americans living in lower-income neighbourhoods are facing greater difficulty in keeping up with their credit card payments compared to more affluent groups, according to a separate report published by the New York Fed on Tuesday.
Delinquency rates across all neighbourhood income tiers remain above pre-pandemic levels, while the gap between the wealthiest and poorest areas has widened since 2022.
In the lowest-income neighbourhoods, 10.3% of credit card balances transitioned into serious delinquency over the past year.
This is more than double the 4.4% rate observed in the wealthiest neighbourhoods.
The average credit card balance per borrower now stands at $6,678, according to TransUnion’s third-quarter analysis report.
Among borrowers under the age of 30, the rate of credit card debt falling at least 90 days delinquent reached the highest level, according to the Fed’s report.
Democrats won the midterm elections promising to bring down prices, but delivering relief that voters can genuinely feel in their household budgets will be a difficult target to achieve.
America
Mamdani quietly asks Trump to release detained immigrants
New York City Mayor Zohran Mamdani is using his rapport with US President Donald Trump to secure the release of selected detained immigrants.
According to reporting by Politico, Mamdani persuaded Trump during their second White House meeting in February to free a university student who had been detained that day by ICE.
The outcome served as validation for Mamdani, who pointed to the release of the Columbia University senior as proof that his surprisingly cordial relationship with Trump could produce tangible results for New Yorkers.
Mamdani subsequently continued to seek similar immigration-related interventions from the Republican president.
Since that February meeting, Mamdani and his aides have quietly forwarded the names of approximately two dozen immigrant New Yorkers held in ICE custody to Trump’s team, asking the president to order their release.
Two sources familiar with the matter said Mamdani most recently shared names of detained immigrants during a September meeting with Trump at Gracie Mansion.
The sources said the individuals in question had no serious criminal records, though they declined to disclose their identities, citing safety concerns.
According to Politico, these ongoing efforts regarding detained immigrants indicate Mamdani’s belief that he can leverage his rapport with Trump to advance causes the mercurial president might not ordinarily support.
Mamdani’s decision not to disclose these continued appeals publicly suggests an inclination to keep his interventions private to improve their chances of success.
Yet it remains unclear whether any immigrant besides Columbia University student Elmina Aghayeva has actually been released as a result of these efforts, and concern is mounting within City Hall that the window for securing such releases may be closing.
Mamdani’s aides working on the releases, including his Chief of Staff Elle Bisgaard-Church, communicated primarily with Trump’s White House Chief of Staff Susie Wiles, according to people familiar with the matter.
Last week, Trump replaced Wiles with Stephen Miller, the architect of the administration’s most hardline immigration proposals and one of the loudest internal voices urging the president to pursue a mass deportation agenda in his second term.
A person familiar with the Mamdani administration’s thinking said the mayor’s team views it as unlikely that Miller will continue cooperating in the manner Wiles did, given his stance on immigration.
Mamdani spokesperson Dora Pekec declined to comment on internal concerns regarding Miller and did not provide details about the immigrants whose release the mayor had requested.
Pekec noted, however, that Mamdani has “consistently advocated directly on behalf of New Yorkers in his calls and meetings with the president.”
Murad Awawdeh, a close Mamdani ally and president and CEO of the New York Immigration Coalition, said the mayor’s team should not halt engagement with the Trump administration on immigration matters because of Miller’s promotion:
“Stephen Miller is a cruel individual who has spent his career attacking immigrants, but he is not the president; Donald Trump is, and this is his deportation agenda. New York expects the president to work with the mayor to serve this city and end the terror in our communities. Miller’s promotion changes none of that.”
Mamdani’s warm dynamic with Trump has confounded both allies and critics.
During last year’s New York mayoral election, Trump referred to Mamdani as a “communist lunatic” and threatened to have him arrested.
In turn, the 35-year-old democratic socialist branded the president a “fascist” and pledged to fight him relentlessly if elected mayor.
Yet that animosity fell away late last year during their first White House meeting, where an amicable tone prevailed.
The thaw culminated in September at Gracie Mansion, where Trump said Mamdani had “great potential” to be a “terrific mayor.”
Mamdani returned the compliment by noting that the president had “built quite a bit of housing in our city.”
Despite the polite exchange, questions remain over how much substantive progress Mamdani can genuinely secure through Trump, including on immigration.
To date, Aghayeva’s release stands as one of the few concrete concessions Mamdani has obtained from Trump.
Aides on both sides are also discussing a multi-billion-dollar federally backed housing initiative in Queens, and last month Mamdani used his channel to Trump to help secure a temporary visa for a Ghanaian woman whose son was shot and killed in the Bronx.
Beyond those instances, few tangible results have emerged, though Trump’s decision not to enact punitive measures against New York is viewed by Mamdani’s allies as a win for the city.
Trump’s political standing is widely seen as weakened following the Republican Party’s loss of both houses of Congress in elections last Tuesday.
How this political shift will affect Trump’s willingness to engage with ideological adversaries such as Mamdani remains uncertain.
Miller’s appointment as chief of staff appears to signal little presidential interest in moderation, particularly on immigration policy.
Even so, the mayor said last week that he does not intend to stop seeking Trump’s assistance, despite “fierce” policy disagreements.
“We have found an area of common interest in the well-being of New York City, and as long as that can deliver for our city, I’m going to keep that door open,” Mamdani told Politico on Friday in Puerto Rico.
Mamdani and other elected officials from New York had gathered in Puerto Rico for the annual Somos political conference.
Two days later, in an interview on Fox News, a network Trump is known to watch regularly, Mamdani described a “productive relationship” with the president, saying the two text and speak by phone frequently:
“Through those conversations, we were able to get a New Yorker out of ICE detention. We were able to secure a visa for a grieving mother who would have otherwise had to watch her son’s funeral from thousands of miles away. What that tells me is: My job is to deliver for New Yorkers, and I have to work with whoever has the power to do that, wherever they may be.”
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