₿ Justin Tew - Objective Finance 📈

JUST IN: Elon Musk's Tesla $TSLA officially unveils new flying Roadster. WHAT IN THE F-

🇺🇸 Earnings growth is expected to lose momentum across most S&P 500 sectors 📉 Bank of America estimates that 10 of 11 sectors will see slower earnings growth in Q3 than in Q2. Some of the biggest expected slowdowns: • Consumer discretionary: 91% to 1.8% • Financials: 22.3% to 2.4% • Communication services: 126% to 66% • Technology: 77.9% to 65.9% • Materials: 44.6% to 30.1% Healthcare is the exception, moving from -6.6% growth in Q2 to 2.6% in Q3. (watsup healthcare sector :>)

💀 SIA Business Class is finally getting pyjamas 🛏️ From November 2026, Singapore Airlines will roll out new amenities across every cabin class. The headline upgrade? For the first time ever, Business Class passengers will receive sleeper suits on: - selected overnight flights longer than 6 hours - all long-haul flights Business Class also gets new BYREDO amenity kits containing: - Blanche perfume - hand cream and lip balm - eyeshades, socks and a dental kit Other cabin upgrades include: - Suites and First: SISLEY skincare kits and 100% cotton sleeper suits - Premium Economy: recycled-material pouches with travel essentials - Economy: collectible batik drawstring amenity kits Amenity kits will generally be offered on flights longer than 6 hours, though the rollout will be progressive, so not every eligible flight may receive them immediately. A small upgrade, but a meaningful one for SIA. Its rivals have offered Business Class pyjamas for years, and passengers increasingly expect more than just a lie-flat seat on long-haul flights. The bigger reveal is still coming, with SIA expected to unveil its next-generation seats, entertainment system and travel experience. For now, Business Class passengers can finally leave the extra sleepwear at home. 😴 Read more here

💵The $3.5 trillion question behind the AI buildout ❓ Columbia professor Stijn Van Nieuwerburgh estimates that AI companies must generate $3.5 trillion in annual revenue by 2032 to justify the data-centre buildout now underway. That is roughly 9% of US GDP, comparable with what Americans spend on food, twice total spending on energy or software, and seven times consumer spending on phone, streaming and internet services combined. The estimate assumes AI companies can maintain today’s scarcity-driven pricing even as capacity quadruples and competition increases. But computing capability has been doubling every four to five months, while effective prices have fallen 47% per quarter since 2023.

🔥 Weak jobs report reduces the odds of an October rate hike 🚨 The US added just 29,000 jobs in September, below every estimate in Bloomberg’s survey. • Unemployment rose to 4.2% • Annual wage growth slowed to 3%, its weakest pace since 2021 • Labour-force participation rose to a four-month high of 61.8% The weakness was concentrated in AI-exposed white-collar sectors, while construction, manufacturing and healthcare continued to add jobs. Jefferies called the report “the nail in the coffin” for an October hike, and Bloomberg Economics now expects the Fed to remain on hold for the rest of the year. Layoffs remain historically low, and the household survey showed a rise in employment. The higher unemployment rate partly reflected more people entering the workforce.

🚀 The AI rally is meeting a 24-year high in yields 📈 The Nasdaq 100 reached a fresh all-time high on Friday, and the S&P 500 also hit all-time high again yesterday ... At the same time: • The 10-year Treasury yield topped 5.3% • The 30-year yield reached 5.69% • Both were at levels not seen since 2002 The market has absorbed those higher discount rates because earnings are still accelerating. S&P 500 earnings per share are expected to grow more than 24% in Q3, led by projected growth of more than 65% in tech.

🇺🇸 US job openings fell to a five-month low 📉 Job openings dropped to 7.1 million in August, below every estimate in Bloomberg’s survey. Employers across professional services, healthcare, government, manufacturing and construction all pulled back on hiring plans. At the same time: • Layoffs fell to their lowest level since March 2025 • The quits rate held at 1.9% • Hiring edged only slightly higher • Consumer confidence fell to its weakest level since 2014 Economists expect Friday’s payroll report to show 90,000 new jobs, down from 162,000 in August. Bloomberg Economics said that if unemployment also rises, an October Fed pause would become more likely.

🇸🇬 What does this mean for Singapore? ❓ 1. S-REITs may face pressure S-REITs are often compared with bonds because both are held for income. When safe government-bond yields rise: - REIT distribution yields become relatively less attractive - Investors may demand lower REIT prices and higher yields - Refinancing costs can increase - Highly leveraged REITs may face greater pressure REITs with more fixed-rate debt, longer debt maturities, strong occupancy and healthy interest coverage may be better positioned. 2. Singapore bond prices can also be affected Singapore Government Securities and bond funds may follow the direction of global bond markets. Existing long-duration bonds may fall in price, while newly issued bonds may eventually offer more attractive yields. Singapore T-bill yields will not necessarily move one-for-one with US Treasury yields because local liquidity, auction demand and Singapore interest-rate conditions also matter. 3. Mortgage rates may stay elevated for longer Singapore mortgage rates are more directly influenced by local funding conditions and SORA than by the US 30-year yield itself. However, persistently high global rates can make it harder for local borrowing costs and fixed-rate mortgage packages to fall significantly. Homeowners refinancing soon should avoid assuming that the low interest rates of the past will return quickly. 4. Singapore banks may receive some support DBS, OCBC and UOB could benefit if higher rates support their net interest margins. But the benefit may be offset if: - Borrowing demand slows - Property activity weakens - Customers face repayment stress - Credit losses increase 5. The Singapore dollar may experience volatility Higher US yields can attract capital into US-dollar assets and support the US dollar. However, Singapore’s exchange rate is managed by MAS, so the SGD’s movement will also depend on MAS policy and Singapore’s inflation outlook. The important takeaway A 5.595% US 30-year yield is not automatically a signal that markets will crash. It is a signal that the market is demanding more compensation for inflation, government debt and long-term uncertainty. For investors, this changes the relative attractiveness of different assets: - New bonds may offer better income - Existing long-duration bonds may remain volatile - Expensive growth shares face a higher valuation hurdle - REITs and property face higher financing pressure - Cash flow, balance-sheet strength and debt maturity become more important This is not necessarily the time to avoid bonds or equities altogether. It is the time to understand what you own, how sensitive it is to interest rates, and whether your portfolio can withstand rates staying higher for longer. DM me for a comprehensive review 💪🏻 Sources: Financial Times, Bloomberg and Reuters reports published in September 2026. The 5.6% yield was an intraday market level and may continue to fluctuate.

🇺🇸 US 30-Year Treasury Yield Hits 5.6%, Highest Since 2002 📈 The US 30-year Treasury yield has climbed to 5.6%, its highest level in approximately 24 years. This may sound like a US bond-market issue, but US Treasuries are the world’s benchmark for borrowing costs. When their yields rise sharply, the effects can spread across bonds, shares, property and even Singapore’s financial markets. ❓ First, what does a 5.6% yield mean? It means investors now demand a much higher return to lend money to the US government for 30 years. This does not mean every existing Treasury bond suddenly pays 5.6%. Instead, prices of existing bonds fall until their effective yields become competitive with current market rates. The basic relationship is: - Bond yields rise - Existing bond prices fall - Longer-duration bonds are usually affected more ❓ Why are yields rising? Several concerns are coming together: 1. Inflation may remain elevated Higher oil prices and persistent inflation make investors less confident that interest rates can fall quickly. 2. Rates may remain higher for longer If the Federal Reserve keeps rates elevated or raises them further, investors will demand higher yields from longer-term bonds. 3. Rising US debt and deficits The US government needs to issue more Treasuries to finance its spending and refinance existing debt. More bond supply means investors may demand higher yields before absorbing that debt. 4. Investors want more compensation for long-term uncertainty Thirty years is a long commitment. Investors are demanding a larger “term premium” to compensate for future inflation, fiscal and policy risks. ❓ What are the wider implications? 🏛 Existing bondholders Long-duration bond prices can decline when yields rise. This matters for bond funds because they do not necessarily hold every bond until maturity. However, investors buying new bonds may now receive more attractive yields than before. 📊 Equities Higher Treasury yields increase the return available from relatively safer assets. This can make expensive shares less attractive, particularly technology and other growth companies whose valuations depend heavily on future earnings. Companies also face higher refinancing and borrowing costs, which can reduce profits. 🏠 Property Higher long-term interest rates can increase financing costs and pressure property valuations. If investors can earn more from government bonds, they may demand higher yields from property and other income-producing assets too. 🏦 Banks and borrowers Banks may initially benefit from better lending margins, but if rates remain high for too long, loan demand can slow and defaults may rise. This turns the benefit into a trade-off rather than a win.

JUST IN: 🇺🇸 US 30-year Treasury yield rises to highest level since 2002. 🤯 5.595% ???!?! 💀 What the .. let me pen down my thoughts and share with yall , esp what it means for us in Singapore 🇸🇬

📈 THE AI BUILD-OUT IS ADDING LEVERAGE AND INFLATION PRESSURE ✈️ Five hyperscalers are projected to spend $4.2 trillion through 2029. A growing share of that capital expenditure is debt-financed, sometimes through off-balance-sheet entities with limited public disclosure. That makes the financial system’s total exposure difficult to measure if AI-related revenue falls short of expectations. The build-out is also feeding into inflation. Import prices for computers, peripherals, and semiconductors are up about 20% year over year, contributing to higher prices for products such as iPhones and gaming consoles. :< AI demand is also lifting wages in related fields and contributing to pressure on long-term interest rates.

🇺🇸 US LONG-TERM YIELDS BREAK HIGHER 📈 The 30-year Treasury yield reached 5.53%, its highest level since 2004, while the 10-year crossed 5.22%. The market has absorbed the Fed’s first rate hike in three years and is pricing in the possibility of more. Citigroup says there is “no clear near-term upper bound on hikes” while energy prices continue to support inflation. Friday’s long-end selloff came even as oil fell 2.3% and short-term yields declined. That suggests term premium and fiscal concerns are increasingly driving the move, alongside expectations of structurally higher rates and greater Treasury supply.

🥮 Happy Mid-Autumn Festival 2026! 中秋节快乐！🌙 May this season of reunion bring you and your loved ones happiness, good health, and meaningful moments together! Wishing you a beautiful evening filled with warmth, laughter, and togetherness under the full moon. 🌕🏮

⚡️ Nike just got removed from the S&P100. Should investors be worried? 😟 https://www.foxbusiness.com/video/6405393056112 Nike has officially been removed from the S&P 100 after roughly 18 years. For context, the S&P 100 contains some of the largest and most established companies in the US. Nike is still inside the S&P 500, so this doesn't mean Nike is disappearing from the market or suddenly becoming a “bad company.” ❓ What actually happened? Over the last few years, Nike's share price and market value have fallen significantly. Its stock is down roughly 80% from its 2021 peak, as the company has struggled with slower sales growth, stronger competition, problems with its direct-to-consumer strategy and difficulties getting product momentum back. At the same time, companies connected to technology and AI infrastructure have grown tremendously. So during the latest reshuffle, Nike, Colgate-Palmolive, Simon Property Group and Honeywell Aerospace were removed, while Dell, Palo Alto Networks, Arista Networks and SanDisk entered. Interesting part? All four new companies are technology companies. This tells us something about how much market leadership has shifted toward technology. Haven't we seen this before? Yes. A recent example is Lululemon. Lululemon was removed from the Nasdaq-100 in December 2025 after a difficult year for its stock. When the change became effective on 22 December 2025, Lululemon closed at about US$212. As of 21 September 2026, it was around US$101. That's another fall of roughly 52%. But here's the important lesson: It didn't fall 52% because it was removed from the index. The index removal was more like a symptom of what had already been happening to the business. Since then, Lululemon has continued dealing with weaker demand, lower margins and cuts to its earnings outlook. Think of it this way: A company usually doesn't struggle because it gets kicked out of an index. It often gets kicked out of the index because it has already been struggling. So what should investors do? The first lesson is don't panic just because a company gets removed from an index. Being removed from the S&P 100 does not automatically mean Nike will continue falling, just as being added to an index doesn't guarantee that a stock will keep going up. Instead, go back to the business. Ask: Are sales growing? Are profits improving? Is the company gaining or losing customers? Is management successfully turning things around? And most importantly, am I paying a reasonable price for the business? The second lesson is about diversification. Twenty years ago, today's biggest winners weren't necessarily the biggest companies. Market leadership changes. That's one advantage of owning a diversified index: as companies rise and fall, the index gradually changes with them instead of requiring us to correctly predict every future winner. And that's probably the biggest takeaway from Nike's story: Don't fall in love with yesterday's winners. Own a portfolio that can participate in tomorrow's winners too.

💳 Trust Freedom Card: 100,000 miles and no foreign currency fees 🚀 Trust has launched a new Miles mode for its Freedom Card, making it the first Singapore credit card to offer miles on overseas spending with zero foreign currency transaction fees. Here’s what stands out: - No annual fee - Earn 1.3 miles per S$1 on both local and overseas spending - No foreign currency transaction fee - No minimum spending requirement or miles cap - Trust Miles can be converted 1:1 to KrisFlyer or Max Miles - Transfers are instant and can start from just 1 mile - Each conversion costs S$27.25 ✈️ Welcome offer: Up to 100,000 Max Miles New-to-Trust-card customers approved from 21 September to 31 October 2026 can earn: - Spend S$1,000: 20,000 Max Miles - Spend S$5,000: 50,000 Max Miles in total - Spend S$15,000: 100,000 Max Miles in total The spending must be completed within 31 days of approval or by 30 November 2026, whichever comes first. Important conditions: - You must have never held a principal Trust credit card - You must select Miles mode during onboarding - Selecting cashback or Stockback first could make you ineligible for the miles offer - Do not spend more than you normally would just to unlock the bonus 🌍 Why it is interesting for overseas spending Most Singapore credit cards charge around 3% to 3.5% on foreign currency transactions. The Trust Freedom Card earns 1.3 miles per dollar without that fee, making it useful when: - Your higher-earning card’s bonus cap has been reached - The overseas purchase does not qualify for bonus miles elsewhere - You prefer avoiding foreign currency fees over chasing a higher headline earn rate ⚠️ What to watch out for The card calculates miles in S$5 spending blocks. This means: - A S$4.99 transaction earns no miles - A S$9.99 transaction earns the same miles as S$5 - The 1.3 miles-per-dollar rate works better for larger transactions Other key exclusions include: - Insurance premiums - Education - Government payments - Utilities - Charitable donations - GrabPay, YouTrip and other prepaid top-ups - CardUp transactions The 1.3 miles-per-dollar local earn rate is also not particularly strong, since other cards may offer better rewards for local spending. 📊 Other rewards modes The card also allows users to choose a different rewards mode each membership quarter: - Unlimited Cashback: 1.5% locally and 0.5% overseas - Bonus Cashback: Advertised at up to 15%, but the article calculates the best effective return at around 5.2% after accounting for minimum spending and caps - Stockback: 3% until 31 December 2026, falling to 2% from 1 January 2027, subject to a S$500 quarterly cap My takeaway: The Trust Freedom Card is most compelling for two groups: 1. New customers who can meet the welcome-offer spending naturally 2. Travellers who want to earn miles overseas without paying foreign currency fees It is less compelling as an everyday local-spending card. The best reward is not the biggest headline bonus. It is the reward you can earn without overspending, paying unnecessary fees, or changing your normal financial habits. Read the full MileLion review