Tag Archives: Tepid

IMF has gloomy outlook for world economy: ‘Without a course correction, we are indeed heading for ‘the Tepid Twenties” – Fortune

  1. IMF has gloomy outlook for world economy: ‘Without a course correction, we are indeed heading for ‘the Tepid Twenties” Fortune
  2. IMF chief sees inflation dropping further in 2024, not yet fully defeated Reuters.com
  3. IMF Chief Warns Central Banks Against Cutting Too Soon The Wall Street Journal
  4. Outlook for the Global Economy and Policy Priorities, Speech by IMF Managing Director Kristalina Georgieva ahead of the 2024 IMF-World Bank Spring Meetings International Monetary Fund
  5. Central banks must resist pressure for early rate cuts, says IMF head The Guardian

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Ukrainian Jews grapple with Israel’s tepid support as Iran aids Russia

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KYIV, Ukraine — When Russia invaded Ukraine, the homeland of his parents and grandparents, David felt obligated to leave Israel and fight against Vladimir Putin, the man he views as a modern Hitler.

After praying on a recent Shabbat in Kyiv’s oldest synagogue, David, 56, said he was proud to have spent most of the past nine months on the front lines, where he took fire from artillery and drones while fighting in Ukraine’s eastern offensive in Kharkiv.

But he fumed when asked about Israel, his home for more than two decades, and about its limited support for Ukraine — a stance that seems increasingly odd given the deepening alliance between Russia and Iran, whose leaders have repeatedly called for Israel’s destruction and are supporting Moscow’s war effort by supplying drones and missiles.

“Ukraine has the right to criticize the Israeli government about the lack of support,” said David, who requested that he be identified only by his first name to protect himself and his family, including relatives in Russia.

Israel’s position is ever more painful for some Ukrainian Jews as they prepare to celebrate Hanukkah, the Festival of Lights, in intermittent darkness due to the blackouts brought on by Russia’s recurring airstrikes, which have knocked out the heat in the main sanctuary of the synagogue David attends in Kyiv.

Israeli leaders have declined to provide weapons or defense systems to Ukraine and refused to join Western economic sanctions for fear of jeopardizing its security relationship with Russia.

Iran will help Russia build drones for Ukraine war, Western officials say

The Kremlin allows Israeli aircraft to target Iranian arms shipments over Russian-controlled airspace in Syria, which Israel regards as critical to its national defense.

Israel’s stance has drawn the ire of Ukrainian President Volodymyr Zelensky, who specifically requested Israel’s vaunted Iron Dome air defense system. Zelensky, who is Jewish, has invoked the Holocaust when asking for help — angering Israeli’s leaders, who rebuked him for the comparison.

This disagreement has drawn more scrutiny in recent weeks because of Russia’s increasing dependence on Iran for drones being used to attack Ukraine’s civilian infrastructure.

U.S. officials have said that “hundreds” of Iranian drones are being used by Russia to target Ukraine, with another round of strikes hitting the country this week. Western intelligence has also found that Moscow and Tehran have agreed on a plan to build weapons designed by Iran on Russian soil.

Analysts have speculated about what Russia may be providing to Iran in exchange for the drones, but the nature of their deal is not yet known. But there is little doubt that Russia’s needs are helping to develop Iran’s military production capabilities.

“What is Russia promising or implying to Iran as a quid pro quo,” said Dan Fried, a former security adviser to U.S. presidents Bill Clinton and George H.W. Bush. “Israel’s apparent short-term calculations don’t seem consistent with its long-term strategy of aligning itself with Europe and the United States,” Fried said. “What are they thinking?”

Israel has bristled at accusations that it is failing to do enough to assist Ukraine, and has disputed that the Iron Dome could help Ukraine protect itself.Israeli officials have complained that they do not receive enough credit for taking in roughly 50,000 refugees from Ukraine and Russia, and providing more than $30 million in humanitarian assistance, a figure they have calculated by combining the costs of generators, medical equipment, and a field hospital, as well as other “in-kind assistance.”

That support, however, is paltry even compared to some other countries. Estonia, for example, which has a bit more than 1/10th of Israel’s population, has sent $300 million in military aid to Ukraine.

As missiles strike Ukraine, Israel won’t sell its vaunted air defense

Michael Brodsky, the Israeli ambassador to Kyiv, acknowledged he has heard the frustration of some Ukrainian Jews but stressed Israel’s security ties to Russia create limits that cannot be overcome. He said most Ukrainian Jews understand Israel is in a tough position.

“No government in Israel is going to jeopardize this interest for anybody else, including the Ukrainians,” Brodsky said in an interview. Unlike the United States and Europe, Brodsky pointed out, Israel is not part of the North Atlantic Treaty Organization. “Our situation is much more fragile.”

The United States has made clear it wants all of its allies, including Israel, to impose economic sanctions on Russia and to help Ukraine. U.S. officials familiar with the matter, who spoke on the condition of anonymity to describe private diplomatic conversations, said they never expected as much support from Israel as from NATO allies in Europe, but that they were still disappointed.

Ambassador Deborah Lipstadt, the U.S. special envoy to monitor and combat antisemitism, declined to comment on Israel’s decisions. But she said that, as Hanukkah approaches, what’s happening in Ukraine “has a very strong resonance” within the Jewish community in the U.S. given that Russia’s reeducation policies in occupied territories and its “tropes” that Ukrainian leaders are “Nazis.”

“That message resonates in Jews’ historical DNA,” Lipstadt said.

Israel’s incoming leadership has sent mixed signals. Its next prime minister, Benjamin Netanyahu, has called Putin a “friend,” but during his campaign hinted that he might revise Israel’s ban on providing weapons to Ukraine.

Israel’s previous prime minister, Naftali Bennett, privately warned Zelensky there would be consequences if he ever used his bully pulpit to pressure him again, according to other people familiar with this exchange, who also spoke on the condition of anonymity to describe private conversations.

Ukrainian energy systems on brink of collapse after weeks of Russian bombing

The tension between the countries has reverberated through Ukraine’s Jewish community, which has seen a dramatic resurgence in the roughly 30 years since the Soviet Union collapsed.

Ahead of his family’s Shabbat dinner in Kyiv, Nachman Dyksztejn, 45, defended Israel’s actions while saying he understood Ukraine’s need to push for military support. Though now living in Israel, Dyksztejn had returned to his home in Ukraine to help with humanitarian relief efforts including in the southern Kherson region, much of which remains under Russian occupation.

It is not for lack of patriotism, or support for Ukraine, that Dyksztejn defended Israel’s motives. He said he sees his family’s future in Kyiv when the war ends.

Dyksztejn said he asked members of Israel’s government why they were not doing more to support Ukraine. But he also pointed out that Ukraine voted several times against Israel this year at the United Nations, including on a measure related to the Palestinian territories. Israel last month then abstained from a U.N. vote on whether Russia should pay war reparations.

“It’s not, ‘Every side has a point.’ It’s, ‘Every side has more than a point,’” said Dyksztejn, who is originally from Belgium. “Ukraine needs it because Ukraine needs it. But Israel cannot take the risk.”

Feelings were also mixed at Tiferet Matzah in the central Ukrainian city of Dnipro, where roughly 70 Jews work at Europe’s biggest manufacturer of the unleavened bread eaten during Passover. Daniel Synchvkov, 31, typically works in IT, but Russian energy attacks had shut down his internet and electricity — forcing him to pick up a shift at the matzoh factory.

“It does not matter what you are — if you are Jew, Christian, Tartar, whatever — everyone here thinks every country on the planet, not just Israel, should do whatever they can to stop this war,” Synchvkov said, as he punched holes in the dough on the matzoh assembly line.

On a recent Shabbat, roughly two-dozen Ukrainian Jews gathered in a classroom behind the Great Choral Synagogue in Kyiv because of the impact of Russian missile attacks to heating in the main sanctuary.

Chanting the Hebrew prayer for peace, they bowed toward a knitted white-and-blue sign in Hebrew spelling “Jerusalem,” which pointed them in the direction of their holy land.

They also prayed for Ukraine’s defenders, Jews and non-Jews, and mourned the recent death of a Ukrainian Jewish soldier who had worn a Star of David with “Ukraine” written in Hebrew on his uniform.

At one point, Rabbi David Goldich uttered an obscenity about Putin while holding the Kiddush cup, containing ceremonial wine.

David, the soldier from Israel fighting for Ukraine, said he was compelled to do so in part because his grandfather volunteered in Ukraine’s army in 1941 to stop Hitler. Although born in Russia, he wore a patch of the Israeli flag on one sleeve — and a patch with Ukraine’s golden trident on the other.

He asked why the city of Kharkiv, home to some of the worst atrocities in the war, would not have benefited from Israeli’s Iron Dome system. “It would have been very helpful to prevent suffering cities, to prevent children from dying,” he said.

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Sparkling Serena Williams overcomes tepid start to delight US Open crowd | Serena Williams

As Serena Williams desperately tried to drag herself through the first set of the match that could have marked the end, she was struggling badly. She had been sucked into an endless service game at 5-3 and she could only fight to hold on. She eventually faced her fourth break point of the game, the pressure rising with every point. And then, just like that, she took Arthur Ashe Stadium back to the past: ace, ace, unreturned serve. Set. Williams walked towards her seat, she clenched both of her fists and she roared into the skies.

The serve, the fight and the attitude have all been some fundamental sights in tennis for two and a half decades. After these weeks, they will likely never be seen again.

If there was any doubt about the significance of Williams’ imminent departure, the spectacle that greeted her arrival on Arthur Ashe Stadium for her likely final tournament nailed it home. Mike Tyson sat next to Martina Navratilova. Gladys Knight appeared to Midnight Train to Georgia playing in the background. In Williams’ player box, her daughter, Olympia, emerged in the stands with beads in her braids, a full circle moment.

After Danka Kovinić made her way onto Arthur Ashe Stadium to relative golf claps, Williams’ entrance was preceded by a video narrated by Queen Latifah. She entered in a costume that sparkled from head to toe in diamonds, from her hair to the bedazzled cape that trailed her onto the court. Both Kanye West’s Diamonds from Sierra Leone and a deafening, prolonged roar from he crowd soundtracked her arrival. As they warmed up, the screens around the edge of Arthur Ashe Stadium read “greatest of all time” and the announcer listed Williams’ achievements in painstaking detail.

Williams has contested the biggest matches in the world, she has willed her way from the brink and she has held all four grand slams at once. At the height of her powers, when dominance was her middle name, her mental strength was peerless. But she has never experienced anything like this, playing with the knowledge that this is the end.

Under such pressure, she fared well and she performed far better than in her other recent outings. Her nerves were naturally present from the beginning and she double faulted twice in her opening game. Even after she immediately led by a break, she could not settle. Every roar from the crowd initially seemed to be an unwelcome reminder of the significance of this moment, and as her forehand leaked unforced errors she initially seemed overwhelmed.

But Williams refused to finish her career with a first round loss. She has struggled badly in recent months, winning only once in her three prior singles events and being subjected to a 6-4, 6-0 defeat by Emma Raducanu two weeks ago in Cincinnati. “I was really emotional in Toronto and Cincinnati,” she said afterwards. “It was very difficult. I’m not saying it’s not difficult now. It’s extremely difficult still because I absolutely love being out there.”

Gayle King interviews Serena Williams on court after her victory. Photograph: Justin Lane/EPA

Her desperation to end her career on a positive note was palpable. It was audible in her little footsteps squeaking on the court during every point, the drop shots she chased down at full sprint and the grunts that punctuated every important moment. From her player box, Rennae Stubbs, her new consultant for one tournament only, took advantage of the new coaching rules to holler out loud positive affirmations.

Amid the crowd’s constant screams, Kovinić was composed and present, irritating Williams with her consistency, length and booming first serve. But after her tepid start, Williams slowly found her serve and the free points it unlocked. She recovered from a break down to win the first set and then after struggling badly with the forehand, errors flowing freely, she began to unload with increasing freedom. By the end of the match, she was playing as she always should, imposing herself from behind the baseline.

There was a time, not too long ago, when every Williams victory was merely expected. How quickly things change. As Williams processed her victory, she struck a completely different note to her usual outlook. “Everything is a bonus for me,” she said. From the audience, the feeling was mutual. As she reached match point, almost every fan in Arthur Ashe stood up and watched the entire final point on their feet, craning their necks to get one last look of Williams at full flow.

After a career of shattering expectations, Williams has achieved too much for her to not believe in herself as she next faces Anett Kontaveit, the out of form world No 2. She will head to their second round match determined to engineer at least one last signature moment. Even now, at 40 years old, with her recent struggles, it is hard to cast doubt on her ability to do so.

After the victory, Williams remained on court for the ceremony where Gayle King and Billie Jean King spoke and a video narrated by Oprah played. Olympia, Williams’ husband, Alexis Ohanian, and her sister, Isha, stood by the side of the court. Williams spoke to the audience and in the middle of her comments, she succinctly underlined why this is so meaningful. “I just want people to be inspired,” said Williams. “I’m from Compton, California. And I made it.”

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EU leaders criticised for tepid support bring ‘message of unity’ to Ukraine

  • Arms needed to fend off Russian advances in south and east
  • Ukrainian troops, civilians holed up in Sievierodonetsk plant

KYIV, June 16 (Reuters) – The leaders of Germany, France and Italy – all criticised in the past by Kyiv for support viewed as too cautious – made a joint visit to Ukraine on Thursday, touring a town devastated by Russia’s invasion.

“It’s an important moment. It’s a message of unity we’re sending to the Ukrainians,” French President Emmanuel Macron said after pulling into Kyiv on an overnight train along with Germany’s Olaf Scholz and Italy’s Mario Draghi. They were also joined by Romanian President Klaus Iohannis.

Air raid sirens blared as the visit got under way. They toured the ruins of Irpin, a Kyiv suburb devastated by fighting early in the war, when Russian forces left bodies of civilians littering the streets as they withdrew.

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Noting graffiti on a wall that read “Make Europe, not war”, Macron said: “It’s very moving to see that. This is the right message.”

The visit took weeks to organise, while the three most powerful EU leaders all fended off criticism over positions described as too deferential to Russian President Vladimir Putin. Britain’s Boris Johnson visited Kyiv more than two months ago.

Still, the decision by the three to travel together held strong symbolism at a pivotal moment – a day before the EU’s executive commission is expected to recommend pushing forward with Ukraine’s bid to join the bloc, which EU leaders are expected to endorse at a summit next week.

NATO defence ministers were also meeting in Brussels and were expected to announce more promises of additional weapons for Kyiv. U.S. President Joe Biden pledged $1 billion worth of new aid on Wednesday, including anti-ship rocket systems, artillery rockets and rounds for howitzers.

“Every day, I struggle for Ukraine to get the weapons and equipment it needs,” President Volodymyr Zelenskiy said in his nightly video address to the nation.

Ukraine applied to join the EU just four days after Russia invaded in February, and another four days later Moldova and Georgia appled too.

“As of today we are already so much closer to obtaining this status than we could have dreamed even a few years ago. Ukraine has done everything possible to become a candidate,” Zelenskiy said.

‘SAVE MR PUTIN’S FACE’

Scholz, Macron and Draghi all say they are strong supporters of Ukraine who have taken major practical steps to reduce Europe’s dependence on Russian energy and find weapons to help Kyiv.

But Ukraine has long criticised Scholz over what it regards as Germany’s slow delivery of weapons and reluctance to sever economic ties with Moscow, and was furious this month at Macron for saying in an interview that Russia must not be “humiliated”.

Italy has also proposed a peace plan, which Ukrainians fear could lead to pressure on them to give up territory.

“They will say that we need to end the war that is causing food problems and economic problems…that we need to save Mr Putin’s face,” Oleksiy Arestovych, an adviser to Ukrainian President Volodymyr Zelenskiy, told German newspaper Bild prior to the visit.

Germany’s defence minister said three multiple rocket launchers it had promised Kyiv could be delivered in July or August, once Ukrainians are trained to use them.

Kyiv says it urgently needs more weapons, especially artillery and rockets, to counter Russia’s firepower advantange. Kyiv is taking hundreds of casualties a day as the war has entered a brutal attritional phase in the east.

After Moscow launched its “special military operation” claiming its aim was to disarm and “denazify” its neighbour, Ukraine repelled an armoured assault on Kyiv in March.

Since then, however, Russia has shifted both its aims and its tactics, now trying to fortify territory it occupies in the east and south, and to seize more with slow advances behind massive artillery bombardments.

The main battle in recent weeks has been over the eastern city of Sievierodonetsk. On Wednesday, Ukrainian forces holed up in a chemical factory there with hundreds of civilians ignored a Russian order to surrender.

All remaining bridges linking the city with Ukrainian-held territory on the opposite bank of Siverskyi Donets river were destroyed in recent days, but Ukrainian officials say the garrison is not completely cut-off.

Ukraine still holds a pocket of territory in the wider, eastern Donbas region, which Russia has vowed to capture on behalf of its separatist proxies. Most is on the opposite side of the river, which Russian troops have struggled to cross.

In the south, Ukrainian forces have been making slow inroads into Kherson province, the largest swath of territory Russia still holds from the areas it captured since the invasion.

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Additional reporting by Reuters bureaux; Writing by Peter Graff, Editing by Angus MacSwan

Our Standards: The Thomson Reuters Trust Principles.

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A tale of two presidents: Biden’s State of the Union gets tepid reviews, as Zelenskyy moves onlookers to tears

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President Biden on Tuesday evening gave his first State of the Union address, which was greeted with a lukewarm reception by critics across the political spectrum and marred by gaffes and errors — a sharp contrast the rhetoric of Ukrainian President Volodymyr Zelenskyy, who has won international praise and brought translators to tears.

“The 2022 State of the Union was a mediocre speech poorly delivered,” The Week’s Damon Linker said.

KAMALA HARRIS SEEN MOUTHING WORDS AS BIDEN MIXES UP UKRAINIANS AND IRANIANS

“It’s dispiriting that a White House facing so many daunting challenges could come up with so little,” the Wall Street Journal Editorial Board said. “The President really does need to fire some people and get better advice.”

“It’s dispiriting that a White House facing so many daunting challenges could come up with so little. The President really does need to fire some people and get better advice.”

— Wall Street Journal Editorial Board 

Rob Noel, a speechwriter for former Secretary of State Mike Pompeo, told Fox News Digital: “The intro on Ukraine worked well enough, but boy did he move on quickly, and not to anything particularly compelling or new.

“As a technical matter, the speech felt strung together and disjointed, with cram-ins and jumpy transitions,” he said. “The substance amounted to a dry list of policy points, like it was geared toward lawmakers in the room rather than people at home.” 

There were some who liked the speech. David Litt, a senior speechwriter for former President Barack Obama, told Fox News that he gave it an “A.”

“This is a moment when he is trying to remind a lot of Americans who voted for him and who approved of his job performance as recently as June or even September, why they supported him. And I think he did that really effectively.”

Biden’s bad gaffe

Online, viewers of Biden’s speech noted a number of high-profile gaffes. At one point in the speech he mixed up Ukrainians and Iranians.

“Putin may circle Kyiv with tanks, but he’ll never gain the hearts and souls of the Iranian people,” Biden said in the gaffe.

The error was noticed even by Vice President Kamala Harris, who could be seen apparently mouthing “Ukrainian” right behind the president.

He later raised eyebrows at the end of the speech by declaring “Go get him!” after praising the troops. It was not clear to whom he was referring.

The president also took heat from fact-checkers for a number of claims made during the speech, on his statement from COVID to gun control. For instance, The Associated Press called out Biden for claiming “gun manufacturers [are] the only industry in America that can’t be sued, the only one.”

“That’s false,” the AP said, saying that while they have legal protections from being held liable for injuries caused by criminal misuse of weapons, they are not exempt from being sued. The Washington Post, meanwhile, said that claims Biden made about job creation and deficit reduction were “misleading.”

Zelenskyy’s passionate appeals

The lukewarm response to the speech stands in contrast to the reception besieged Ukrainian President Zelenskyy has been receiving for the way he has been rallying both his people and international support for aid to Ukraine as they attempt to fend off a Russian invasion.

ZELENSKYY’S POWERFUL SPEECH MOVES TRANSLATOR TO TEARS

Zelenskyy, who has been seen in the streets alongside Ukrainian troops and citizens, has been making passionate appeals to the world, and garnering international attention.

On Saturday, working for the German news service Welt, a translator could be heard getting choked up toward the end of Zelenskyy’s speech, before she apologized.

“Ukrainians, we know exactly what we are defending. We will definitely win,” Zelenskyy declared, as the interpreter began to break down. “Glory to each of our soldiers. Glory to Ukraine.”

“If children are born in shelters, even when the shelling continues, then the enemy has no chance in this — undoubtedly — people’s war,” Zelenskyy added. “To victory! Glory to Ukraine!”

Former CIA Moscow station chief Dan Hoffman said Zelenskyy “jolted the West out of its post-Cold War slumber.”

“The Jewish comedian-turned-populist president that’s a silver lining in these dark clouds,” he added of Zelenskyy.

“It’s a stark warning to China and all the other dictatorships around the world,” Hoffman added.

Standing ovation

On Tuesday, hours before Biden was due to make his State of the Union, Zelenskyy received a standing ovation from world leaders after he delivered an impassioned speech for help — calling for European Union membership.

“We have proven that at a minimum, we are exactly the same as you are,” he said during an emergency session of the EU Parliament. “Prove that you are with us. Prove that you will not let us go.

“Prove that you indeed are Europeans,” he continued. “Life will win over death, and light will win over darkness.”

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One reporter commented on the ovation by saying he had “never [seen] it speak with one, very loud voice like this before.”

There too, the official translator became choked up as Zelenskyy said: “We’re fighting just for our land and for our freedom. Despite the fact that all the cities of our country are now blocked. And nobody is going to intervene in our freedom and country and believe you me, every square of today, no matter what it is called, is going to be called Freedom Square.”

At his address, hours later, Biden praised Zelenskyy and the Ukrainian people.

“From President Zelenskyy to every Ukrainian, their fearlessness, their courage, their determination, literally inspires the world,” he said.

Fox News’ Caitlin McFall and The Associated Press contributed to this report.

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BofA Struggles With Tepid Loan Income as Consumers Shun Debt

(Bloomberg) — Bank of America Corp. is struggling to build back its lending income as consumers, flush with cash from government stimulus programs, avoid taking on new borrowings.

Loans and leases in the consumer banking unit fell 12% from a year earlier. Net interest income, on a fully taxable equivalent basis, was $10.3 billion last quarter, the bank said Wednesday. That metric — revenue from customer-loan payments minus what the company pays depositors — was less than analysts’ estimated $10.5 billion.

While government aid programs during the pandemic have helped big lenders like Bank of America dodge widespread defaults, they’ve also meant many consumers and businesses haven’t needed to take on new loans or tap lines of credit. That trend, along with rock-bottom interest rates meant to stimulate the economy, have weighed on the profitability of banks’ core lending businesses. While Bank of America’s loan balances remained down from a year earlier, they grew from the first quarter — the first sequential increase in a year.

“Net interest income and net interest margin both look light,” said Alison Williams, an analyst at Bloomberg Intelligence. “The improvement is likely not as much as hoped by some.”

Chief Executive Officer Brian Moynihan said Bank of America sees organic growth reemerging as vaccination campaigns make progress and the economy recovers.

“Companies need to build inventory and hire workers to meet the growing customer demand,” he said on a conference call with analysts. “This virtuous circle of hiring workers and meeting customer spending will help drive the economy and hopefully will result in more line usage.”

Banks’ Wall Street operations have helped pick up the slack as turbulent markets boosted trading volumes. Companies seeking to stockpile cash, meanwhile, turned to debt and equity financing, and a combination of cheap financing for buyers and attractive valuations for sellers spurred a wave of acquisitions.

Bank of America’s trading revenue fell 14% last quarter, while investment-banking fees fell 1.7%. Financial-advisory fees came in at $407 million in the second quarter, little changed from a year earlier. That contrasts with results at Goldman Sachs Group Inc., which saw an 83% surge in dealmaking fees, and JPMorgan Chase & Co., where that type of revenue climbed 52%.

Bank of America slid 1.3% to $39.35 at 9:32 a.m. in New York. The Charlotte, North Carolina-based company has advanced 30% this year, compared with a 27% gain for the KBW Bank Index.

Chief Financial Officer Paul Donofrio said the second-quarter marked “a turning point” for loan growth and that the bank expects lending to continue increasing as the year progresses. However, he stopped short of reiterating Bank of America’s forecast, provided in April, that net interest income, by the end of the year, would be about $1 billion higher than the $10.3 billion the bank posted in the first quarter.

“This was the quarter where you saw the evidence that we were all looking for that loans were going to start growing,” Donofrio said on a conference call with reporters Wednesday.

Donofrio added later on the analyst call that reaching the previous NII target was “possible” but that a recent significant decline in long-term interest rates “presents a challenge” to achieving that goal.

Bank of America continued to release reserves it built up earlier in the pandemic, anticipating a wave of loan losses that never materialized. The lender released $2.2 billion of reserves in the second quarter, following a $2.7 billion release in the first quarter.

Donofrio said that the bank’s credit losses are at a 25-year low and that he expects reserve levels to continue to decline, though probably not at the pace of previous quarters.

Also in the second-quarter results:

Noninterest expenses rose 12% to $15 billion.Net income more than doubled to $9.2 billion, or $1.03 a share. Analysts estimated 77 cents, on average.Total revenue dropped to $21.5 billion.

(Updates with CEO’s comments starting in fifth paragraph.)

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