Operator: Our next question comes from Stephanie Moore with Jefferies.
Stephanie Moore: I was sort of wondering maybe talk a little bit about what you’re saying in your Asia Pacific segment or Asia Pacific, Middle East, it seems to be one area, where there’s a little bit more strength compared to the other regions. So any color there would be helpful?
Jonas Prising: Yes. Sure, Stephanie. Yes, we are seeing some strength, both in Asia Pac and also in Latin America. They are regions where we have very strong market positions. The labor markets are also resilient in those areas. And if we specifically talked about Asia Pacific; in Japan, our business there has just concluded the 35th consecutive quarter of strong growth. We feel very good about our Japanese business. And the next 2 businesses in terms of size, India and Australia are also performing well. We’re rebalancing our client mix there to some degree but we are seeing good profitability levels there in those markets. So we feel very good about our footprint in Asia Pac and frankly, also in Latin America, where we have very strong positions in markets that are demographically strong.
They are great locations for near-shoring as it relates to North American activities. And of course, Asia and India, in particular, has a very strong position in terms of IT resources, both onshore but also offshore resources that we benefit from an experience perspective. So we’re very pleased with the performance that we have in Asia Pac and in Latin America, given the broader picture.
Jack McGinnis: Stephanie, I would just add on the guide for APME, you can see — on the revenue side, based on what Jonas mentioned and some of the mix-related changes we’re making in some of the tighter margin staffing margin countries like India and Australia, that’s impacting the revenue trend. But the bottom line is still very strong for APME and we expect that to continue to be a stable contributor on OUP dollars into the third quarter.
Stephanie Moore: Great. And then, just lastly for me; as you look at your third quarter outlook, could you maybe talk a little bit about some of the puts and takes embedded within your gross margin guidance?
Jack McGinnis: I’d be happy to, Stephanie. So I think it’s actually pretty straightforward, when you consider what happened in the second quarter. So I think in our prepared comments and in our walk, you can see that perm recruitments really was the big swing factor in the second quarter. So perm came off a bit more than we expected in the second quarter. That’s why we had a bit more pressure on the GP margin. With that being said, 17.8% is still holding up fairly well in the current environment, so down 40 bps going into the third quarter, it’s really that continuation of perm. So we are taking a bit of a cautious stance anticipating that perm came off a little bit more than we expected in Q2. So we’re anticipating that perm is going to continue to come off a bit more into Q3.
That’s really what’s driving the margin change. So sequentially, we go from that 17.8% to 17.4% at the midpoint. And that really is just perm continuing to run off. We can — just based on the conversation we just had and Jonas gave a lot of color on staffing margin, staffing margin is continuing to hold up very well and that is in our forecast for the third quarter. And I think the one item that’s been helpful to offset the pressure on perm is Right Management. So we are seeing that. You can see it in the GP bridge and we expect Right Management to continue to have positive trends into the third quarter as well which will help offset — partially offset some of that perm pressure that we’re anticipating.
