In this briefing:
- The Fed Throws in the Powell (Err Towel) … QE4 Is Here!
- Exxon’s Mozambique LNG Project Awards Service Contracts but FID Slips into 2020
- US Fed announces QE4 in all but name
- Decision to expand balance sheet by US$60 billion/ month via repos
- Balance sheet will have to grow by at least another US$300-500 billion, ie circa 20%
- This is a major warning for bonds. Previous QEs saw 100-150bp added to yields
Exxon Mobil (XOM US) and partners awarded the key contracts for the Rovuma LNG project in Mozambique, which makes the project’s sanction almost certain. Despite this, it delayed the final investment decision (FID) until next year. Another bumper set of contract awards are going to TechnipFMC PLC (FTI FP), Jgc Corp (1963 JP) and Fluor Corp (FLR US). Yet another positive for the LNG contractor market.