For 2017, we see the following key themes: Fiscal QE; disruption; China as a competitive threat; defence; European domestic demand; and how to play rising bond yields/inflation. On styles, we take small cap in Europe to OW, and prefer small caps in Europe to the US. In the US, we d/g dividend aristocrats to benchmark, and are OW short duration growth. We are benchmark of Continental European growth. We reduce beta as a style to benchmark. On sectors, we u/g energy and European commercial TV broadcasters to benchmark; and UK non-food retail to OW from benchmark. We add to our OW of insurance and concessionaries. We d/g semis and airlines to benchmark; asset managers to UW; and reduce the OW of banks and luxury.