Mexico leftist loses key vote in presidential bid

Mexico City's leftist mayor lost a vote on Friday that could derail his presidential bid in 2006, as a legislative committee recommended Congress strip him of his immunity to face contempt of court charges.

The committee voted 3-1 against Andres Manuel Lopez Obrador, who decried the charges as a politically motivated bid to oust him from the race in which he is the front-runner.

Mexico, a major emerging market economy and trade ally of the United States, could face months of political and perhaps financial instability if the country fails to resolve the crisis. The lower house is expected to strip Lopez Obrador's immunity in coming days. If Congress votes against him, the mayor will face legal charges in a Mexico City land expropriation dispute that could force him out of the presidential election.