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Brazil's former president Luiz Inacio Lula da Silva faces a court ruling today that's crucial for both his political future and Latin America's largest economy.
The man Barack Obama once dubbed the “most popular politician on Earth” is attempting a comeback after his chosen successor was impeached, the economy tanked and a massive corruption scandal erupted during the rule of his Workers' Party.
The 72-year-old former factory worker, who leads all opinion polls ahead of the October presidential election, is appealing a nine-and-a-half-year sentence for accepting benefits from a construction company. He denies wrongdoing.
If Lula's appeal is rejected, he's likely to be banned from running or taking office. But either way uncertainty may remain for some time — Lula says he'll run for the presidency regardless of the verdict, setting up a legal struggle that could drag on for months, possibly even until after the vote.
Investors wary that Lula would undo recent pro-market reforms have mostly priced in a ruling against him, and markets would probably fall if he were to win his appeal. On the eve of his trial he said he didn't need the market anyway.
Global Headlines
Davos Day 2 | Europe's heavy hitters take center stage today at the World Economic Forum in Switzerland. German Chancellor Angela Merkel and French President Emmanuel Macron are scheduled to speak, and Donald Trump is set to depart Washington for the elite gathering where his Cabinet secretaries already are laying the groundwork for the U.S. president to talk tough on trade. For full coverage of the summit, visit our special hub page.
Over the wall? | The entrenched sides in the immigration debate consuming Washington are edging toward consensus on one crucial point: Trump's planned border wall with Mexico wall may not be such a big obstacle after all. After the collapse of negotiations on immigration that led to a three-day government shutdown, partisan differences actually are less about substance and more about message, Sahil Kapur writes.
Questions for the president | Special Counsel Robert Mueller wants to grill Trump about his decision to fire former FBI Director James Comey and remove Michael Flynn as national security adviser. Mueller, whose investigation has appeared to ramp up in recent weeks, also indicated he would like to recall several White House aides to ask about new information.
Abe's goodwill gesture | Japanese Prime Minister Shinzo Abe defied conservatives in his own party to announce he'd be visiting South Korea for next month's Winter Olympics. He said he'd use the opportunity to press President Moon Jae-in to accept Japan's position that a 2015 deal on Korea's wartime sex slaves cannot be revised. While the leaders will have to play tough for domestic audiences, they also need to present a united front on the North Korea threat.
Inside the ‘special relationship' | Trump and U.K. Prime Minister Theresa May are due to meet in Davos tomorrow, and there's unlikely to be any hand holding. Since their cozy encounter a year ago, the two have clashed repeatedly in public — over intelligence leaks after a terrorist attack in Manchester, the Iran nuclear deal, and most dramatically after the president tweeted a message from a British far-right anti-Muslim campaigner. Tim Ross and Margaret Talev take an exclusive look at the state of transatlantic ties.
And finally... As the world's elite schmooze in the Swiss Alps, a report on the who's-who of London is generating plenty of outrage across the Channel. The men-only, black-tie, charity fundraiser — revealed in the Financial Times — reportedly saw waitresses sexually harassed by some attendees in a crowd that included London business, sports and media personalities. One of the auction items was lunch with British Foreign Secretary Boris Johnson, while another was tea with Bank of England Governor Mark Carney.
--With assistance from Iain Marlow and Kathleen Hunter
To contact the editor responsible for this story: Raymond Colitt at rcolitt@bloomberg.net, Ruth Pollard
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