The only trace that could be seen was in the business leaders' assessments of their own production prospects, which dropped 6 points. Otherwise the results were strong. For the first time since November 2014, there was a widespread improvement in business confidence, which touched all sectors (confidence rose 1 point in industry and construction, 2 points in wholesaling and 3 points in services and retailing). Markit PMI indexes (flash estimates) point in the same direction, albeit more moderately. The composite index gained 0.4 points to 50, lifted by the manufacturing sector as well as services. In contrast, the same figures for the Eurozone were in decline, with a sharp drop in manufacturing (down 0.9 points to 51.9) and virtually none in services (-0.1 point to 52.7), which limited the overall decline in the composite index (-0.2 points to 52.9). In the UK, the business climate index plunged, down nearly 5 points in services (to 47.4) and 3 points in manufacturing (to 49.1). The composite index shed 4.7 points to 47.7. Although the decline in the UK was surprisingly strong, it seems only natural that it would be the first to feel the negative effects of Brexit. Even so, we should continue to expect knock-on effects to strain activity on this side of the Channel.
Alexandra Estiot
BNP Paribas SA published this content on 22 July 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 22 July 2016 15:28:08 UTC.
Original documenthttps://group.bnpparibas/en/news/brexit-business-7-days-economics
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BNP Paribas is France's largest banking group. Net banking product (NBP) breaks down by activity as follows:
- retail banking (54%): retail banking activity in France (24.1% of NBP), in Belgium (14.6%), and Italy (10.2%). The remainder of the NBP (51.1%) is from international activities and specialized financial services activities (consumer loans, real estate credit, leasing credit, car fleet management, computer equipment leasing);
- finance and investment banking (34.4%): consulting and capital market activities (83.7% of NBP; merger-acquisition consulting, activities related to the stock, interest, and exchange markets, etc.) and financing (16.3%; financing for acquisitions, projects, raw material transactions, etc.);
- institutional and private management and insurance (11.6%): asset management, private banking activity (No. 1 in France), real estate and on-line brokerage services, insurance and securities services (No. 1 in Europe for retained securities).
At the end of 2023, BNP Paribas was managing EUR 988.5 billion in current deposits and EUR 859.2 billion in current loans.
Net banking product is distributed geographically as follows: Europe, Middle East and Africa (82.9%), America (9.8%) and Asia/Pacific (7.3%).