Pernod Ricard’s RI trading update supports our thesis that fiscal 2010 will be another challenging year, but that there are signs of recovery on the horizon. We’re maintaining our fair value estimate. Sales in the first half of fiscal 2010 fell by 3%, with the rate of decline slowing throughout the period. Although sales remained sluggish in North America and Europe, Asia was a bright spot, with signs of recovery in China and India. The company said sales through the duty free channel had also begun to rebound, and that consumers switching into spirits from wine had provided a positive product mix effect. Although we expect the company’s interim results to provide more color when they are released on Feb.18, 2010, sales during the first half of fiscal 2010 appear to be in line with our forecasts.