FirstFT: US, Iran complete prisoner swap in diplomatic breakthrough

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Good morning. The United States and Iran have agreed to a high-stakes prisoner swap after months of negotiations, a breakthrough that Washington hopes will open the door to a de-escalation of tensions between the arch foes.

In a carefully sequenced process, five U.S.-Iranian dual nationals, along with two relatives, landed in Qatar on Monday after being released by the Islamic republic. They were greeted by officials and family members after landing in Doha. The United States also released five Iranians from American prisons.

The exchange came after $6 billion in Iranian oil revenues, frozen in South Korea, were transferred to bank accounts in Qatar, where the funds will be monitored to ensure they are used appropriately.

The hope is that the release of the prisoners will help build a level of trust that will create the conditions for further discussions about Iran’s muscular nuclear program.

The exchange “effectively removes an obstacle” to continued diplomacy on Tehran’s nuclear ambitions and other issues, a senior official in US President Joe Biden’s administration said. “We are not closing the door entirely on diplomacy,” the official said. “If we see an opportunity, we will explore it. » Read the full story.

Here’s what I’m keeping an eye on today:

• Economic data : The OECD publishes its interim report on the economic outlook, and the EU has its Consumer Price Index and its Harmonized Consumer Price Index from last month.

• The United Nations: The UN General Assembly convenes today with speeches from Ukrainian President Volodymyr Zelenskyy and US President Joe Biden.

Five other headline news

1. China’s central bank lifted temporary restrictions on gold imports which were imposed on certain lenders in order to defend the renminbi. The gap between the price of gold in Shanghai and London hit a record $121 per troy ounce last Thursday, but narrowed to $76 on Monday after the People’s Bank of China eased restrictions on imports of the precious metal last week, according to people close to the informal order. granted to certain state-owned and medium-sized commercial banks.

2. A buildup of leveraged bets could potentially “disrupt” trading in the estimated $25 trillion U.S. Treasury market. the central bank coordination group said on Monday. The Bank for International Settlements issued a warning in its quarterly report about the growth of so-called basis trading, through which hedge funds seek to exploit minute differences between the prices of Treasury bills and their equivalents on the futures market. It is the latest high-profile warning about the risks to financial stability posed by rising interest rates.

3. Saudi energy minister insisted kingdom’s decision to extend oil production cuts It wasn’t about “raising prices,” even though crude futures are trending toward $100 a barrel. Riyadh and Moscow announced earlier this month that they would extend production and export cuts until the end of the year. Brent crude has since risen more than 5 percent and on Monday rose another 1 percent to nearly $95 a barrel, a new high for 2023.

4. Exclusive: Russia blocks Western companies from accessing $18 billion in profits generated in the country last year as the Kremlin seeks to put pressure on “hostile” nations, including the United States, the United Kingdom and members of the EU. Foreign companies trying to sell their Russian operations need approval from Moscow and face steep price cuts.

5. Ride-hailing app Lyft agreed to pay a $10 million penalty to the Securities and Exchange Commission to settle an investigation into disclosures related to the sale of Carl Icahn’s stake in the company before its 2019 IPO. The Wall Street regulator said Lyft failed to disclose that Jonathan Christodoro, a director on the company’s board administration of the company until March 2019, had made millions by masterminding the sale of Icahn’s 2.6 percent stake in the ride-hailing group. Read the full story.

In-depth news

Homes in Dragon Pearl Garden may have cracked pipes and collapsing foundations, but the hundreds of people living in this faded Shanghai neighborhood have no plans to leave anytime soon. “I will stay at home unless the government pays me RMB 20 million to move,” one resident said. This impasse highlights the challenges facing China’s plan to revitalize the real estate sector in part through the redevelopment of these so-called urban villages.

We also read. . .

• What drives Western protectionism? The fear that Chinese competition will damage not only their economies but also their social and political stability, writes Gideon Rachman.

• Erdoğan’s autocratic recipe for Turkey: Recep Tayyip Erdoğan’s tactical measures aim to strengthen his one-man rule, writes Gönül Tol, and the West is helping him.

• “There is no work to balance”: The FT reader survey shows how budget cuts, Covid and AI have disrupted council life.

Chart of the day

Germany’s central bank warned companies on Monday to reduce their dependence on China. The Bundesbank said 29 percent of German companies import essential materials and parts from China, exposing their operations to “significant” damage if this trade route is disrupted due to “rising geopolitical tensions.”

Take a break from the news

Iranians have found little cause for celebration lately, with the economy on its knees and the country under international sanctions. The arrival of superstar footballer Cristiano Ronaldo, whose Saudi club plays in Tehran on Tuesday night, led to moments of excitement and humor – but his visit was not without controversy.

Additional contributions from Tee Zhuo and Gordon Smith