I started off in an earlier answer, explaining how retail e-commerce type of spending and media spending are overlapping — almost completely overlapping today. Not every client’s organization has separated the responsibility for those two areas just yet. But in essence, all those costs in all those different areas are being spent to get a great ROI and to move the client’s product. And that’s where our real focus is.
Phil Angelastro : On the FX front or the currency front and margins, there really hasn’t been much of an impact on our margins from a currency perspective, maybe 10 basis points plus or minus each quarter this year or less than 10 basis points. And that’s typical when most currencies are headed in the same direction relative to the dollar. So the costs are coming down. The revenues are coming down roughly in proportion to the change in the currency because the local currencies are naturally hedged. So unless we get a big swing in a particular currency where the revenue drivers for Omnicom are, there’s a big — a larger change or a larger proportion of revenue coming from a market where we have an overly high margin or a lower margin than our average, we typically don’t get margin swings caused by currency because of the natural hedge of our people are located in the same markets as revenue is generated.
So it’s a natural hedging effect for the vast majority of our business that doesn’t have any impact on margins.
Michael Nathanson : Okay. And so I can ask one more. I don’t think you quantified what the hit is going to be this year to divest into acquisitions to total revenues. I might have missed that. We got the first quarter, but what’s your aspect of the year of the revenue changes from divestments?
Phil Angelastro : Right now, we’re going to kind of cycle on Russia after the first quarter. That was the main disposition that’s still out there. And we’d expect the number for the rest of the year based on deals that are actually closed to be small, kind of close to a push because we don’t have any sizable acquisitions or dispositions that are contributing as of now. We expect that to change if we can get some acquisitions done. But I think for the balance of the year, it’s going to be flat after the first quarter.
Operator: And the next question comes from the line of Tim Nollen with Macquarie Group.
Tim Nollen : I actually wanted to ask you a question about acquisitions and divestitures, too. If I look back several years, you’ve got six or seven years’ worth of dispositions, not acquisitions. And if I go back even to about 10 years ago, you were kind of at about zero acquisition disposition for a number of years now. So you used to be a more acquisitive company. You’ve clearly been clearing out some of the businesses that have not been working and focusing on organic growth. I just wonder if there might be more opportunities to go for more acquisitions. You’re not going to call what you might do in Q2, for example, but is this a more acquisitive environment emerging for you? And if so, what kinds of things might you look at?
John Wren : I think we outlined pretty much there. What the areas that we’re most interested in, which I think I called out as being e-commerce, geographic expansion and skill expansion of our precision marketing group and our very strong healthcare group. So those are areas that we’re constantly scraping the market, talking to everybody, we have an entire group that’s dedicated to that in terms of mergers. I think this is a generalization. So making a general statement, it’s not 100% true, but it’s mostly true. And that is, I think, would be what the Fed has done in increasing interest rates, which I believe is pretty permanent. I don’t think sellers have quite absorbed that yet in bringing the pricing in line to what any reasonable business person would anticipate as a terminal rate for buying an enterprise.
