EMERGING MARKETS-Brazil real eyes worst week in a year amid domestic, trade worries

The real dropped about 1% to 4.1398 per dollar, adding to sharp declines this week after major global oil firms snubbed Brazil’s biggest-ever pre-salt oil auction, with only the state-owned Petrobras and Chinese state firm CNODC awarded blocs. Adding to the downbeat mood, Brazil’s Supreme Court decided on Thursday to end the mandatory imprisonment of convicted criminals after they lose their first appeal, overturning a rule that contributed to the success of Brazil’s biggest corruption investigation, the so-called Car Wash operation. If and when he is released, Lula would be free to engage in politics but would not be eligible under Brazil’s Clean Record law to seek elected office for eight years after his first conviction in June 2017.