…We close our underweight in China and move BRICs to an over- Seamus Mac Gorain weight within EM, i.e long MSCI BRICs vs MSCI EM. • Credit — All-time record US HY inflows signal further spread narrowing. Matthew Lehmann • Foreign exchange — European bank recapitalization could lead to repatria- tion on foreign holdings, but the impact on EUR will likely be small. • Commodities —We expect the Brent-WTI spread to narrow further to $101 bbl by the end of next year. …