Royal Russell PEB (Politics, Economics & Business) by RoyalRussellSchool

29 JUNE 2022

Introduction

Sports

Student articles

- KEY STORIES

- SPORTS BUSINESS

- WHAT TO EXPECT - THE TEAM BEHIND THE PAPER

- WORLD CUP NEWS SPONSORSHIP - TRANSFER MARKET -

- MORTGAGE RATES -ECONOMIC SANCTIONS - E-COMMERCE

SCHOOL SPORTS

Business, economic & political news BUSINESS, ECONOMIC AND POLITICAL NEWS OF THE MONTH & STOCKS

ROYAL RUSSELL POLITICS ECONOMICS BUSINESS

Introducing the PEB In this rst ever issue of The Royal Russell Politics, Economics and Business round up there will be 5 sections. The rst section will cover sports business, word cup news and school sport (page 2). The second section is on student articles (page 3 to 5). The third section is on economics and business news (page 6). The fourth section is on political news (page 7). The nal section is on stocks (page 8). The team working on The RRS PEB consists of 4 students, Robert Ireton (editor, stocks correspondent), Miles King (marketing), Ted Jenkins (editor) and Joshua Morgan (political editor). All working together to create an informative newspaper in correlation with the economics society.

The Latest Breaking Sports News of the Month Sports is a business. Football being the biggest sport around the world businesses invest heavily in clubs, teams and countries in attempts to get their brand seen by the most amount of people as possible. Millions around the world tune in to watch their team play and if they are able to see sponsor logos on a team’s kit, for example 3’s sponsorship deal with Chelsea, costing the mobile company £40 million per year. World Cup news. This month has seen the start of the 2022 World Cup qualifying in Qatar. On Tuesday the 29th of March Poland lead by Robert Lewandowski beat Sweden 2-0, the rst goal coming from Robert Lewandowski, with an outstanding penalty in the 49th minute. The second goal came from Piotr Zielinski in the 72nd minute. This win came as a surprise because despite scoring two goals Sweden dominated possession having 62% with 445 passes and 12 shots, of which only half were on target. Whereas, Poland had 10 shots with 8 on target.

School Sports

In the 2021/22 season Royal Russell’s 1st XI has had a very successful season having a 75.64%-win rate, playing 39 games, winning 27 of them, drawing 5, and losing 7. They started the season strong winning all but 2 of their rst 21 games. The 1st team’s most notable wins include their 8-0 win against Steyning Grammar School in the FA cup, their 9-0 win versus East fi

29 JUNE 2022

On the same day Portugal lead by Cristiano Ronaldo beat North Macedonia 2-0 off of the back of their 3-1 win over Turkey. Both goals came from Manchester United star, Bruno Fernandez. He scored one goal in each half of the game, putting Portugal and Ronaldo one step closer to the nal, and the dream of many watchers as the ‘two goats’ could face off in the nal.

On Wednesday the 1st of June Ukraine beat Scotland 3-1 in a very even game, as both sides had roughly the same number of shots, possession and passes, however Ukraine won the match due to more shots on target, having double the amount as Scotland.

4 days later, on Sunday the 5th of June Ukraine’s winning streak was put to sleep by Gareth Bales Wales. Wales' 64-year wait to appear in a World Cup is nally over after they defeated Ukraine 1-0 in their qualifying playoff nal. An Andriy Yarmolenko own goal proved to be the difference in Cardiff on Sunday as Wales secured their spot in Qatar and their rst appearance at a World Cup since 1958. The World Cup kicks off on the 21st of November with the winners of Afcon, Senegal versus the Netherlands. That same day we will see the hosts of the tournament, Qatar versus Ecuador, as well as the USA versus Wales, and nally, the favourites of the tournament, England versus Iran. Hopefully England can redeem themselves from their loss in the Euros nal versus Italy. Written by Rob Ireton

Grinsted, and 7-1 against South Park in their league. Unfortunately, the 1st XI nished the league on a slight downhill, losing in the London IS Cup quarter nals to Dulwich College (0-3), Richard Challoner School 0-2 in the Area Cup quarter nal, 0-5 against Brad eld College in the Hudl league, and nally losing again to Dulwich College 2-3 in the Trinity Cup. In younger years the boys U15 A’s struggled throughout the 2021/22 season, playing 23 games, only winning 10, drawing 5, and losing 8. However, notable wins came against Lancing College who lost 7-0 to the RRS U15 A’s.

In cricket news the 1st XI, coached by Mr Jewiss beat St Dunstan’s College by 22 runs and Ewell Castle School by 3 wickets. Also, in cricket news the U15 boys beat Ibstock Place School by 10 wickets, however, lost a number of close games against Wilson’s School, Caterham School, Sutton Grammar School, and Langley Park. Written By Miles King

Student Articles The impact of changing mortgage rates The latest update to help rst time house buyers As the price of houses uctuated signi cantly in these recent years, buying, or renting a house has become a hot topic in society. According to this, I would like to talk about how the change in mortgage rate affect the housing market. A mortgage rate is the rate of interest charged on a mortgage. Mortgage rates are determined by the lender and can be either xed, staying the same for the term of the mortgage, or variable, uctuating with a benchmark interest rate. As mortgage rates are linked to the interest rate, so when there is a decrease in the interest rate, the mortgage rate will also fall. A decrease in the interest rate means that the cost of borrowing to buy a house decreases. People are likely to buy a house, because the price are more affordable for them. The demand of houses will increase. As a result, some people may want to do the future investment, because they hope they can become richer in the future, they would buy house at low mortgage rate. This will also stimulate the demand of houses.

The graph below illustrates the variable and xed mortgage rate in the last 10 year. It is from “average interest rates for mortgages in the UK from March 2000 to February 2022, by type of mortgage”. Renting is a good substitute to purchasing a property in the housing market. As people may not have enough money to buy a house, they may use the help to buy scheme, it involves lots of different conditions, maybe some people do not meet these conditions. These conditions involve people’s income, people’s outgoing like the credit card payment and future changes that can make an impact. If, they do not get help from the scheme, they are unlikely to buy a house in the short run. Then, they may decide to rent instead, therefore the demand for houses may not be affected by the change in the price. According to the article from "Financial Times" website, "Mortgage rate rises point to slowdown in UK housing market". From the subtitle "Higher home loan costs and the cost of living crunch are bringing caution to buyers" we can know that an increase in the mortgage rate are discouraging low income earners from increasing consumption spending on property.”

‘While housing demand potentially will be supported by the savings that households have accumulated during the pandemic, the combination of falling real disposable incomes, low consumer con dence and rising mortgage rates is too toxic for the housing market to come away unscathed,' said Samuel Tombs, chief UK economist at Pantheon Macroeconomics." From this context from the article, we can know that a change in the mortgage rate has affected the housing market a lot! Although there will be some people who have enough savings to buy a house, but most people are running out of money from maintain their live standard This means that the increase in the mortgage rate is really harmful for the housing market. In these recent years, especially during pandemic, the Mortgage rate changed frequently. The mortgage rate dropped from 4.54% in 2018 to 3.94% in 2019. But in fact, the average mortgage rate in the UK since 1971 is 7.78%, compare to this, the mortgage rate in 2018 and 2019 is low. The ‘Help-ToBuy Scheme’ is a government scheme to help rst-time buyers get a property with just 5% deposit.

29 JUNE 2022

People can borrow 20 % of the purchase price, 40% in London, interest-free for ve years. It is decreasing the cost for people who want to buy a new house. It is a good thing for the low-income earners as it helps to increase their ability to buy a house, and to some extent, it helps the government reduce funding to build houses. To some extend, a ve-year interest-free mortgage will lead to a decrease in the mortgage rate. The demand of houses is likely to increase as the cost of buying a house decreases because of ‘the help to buy scheme’.

strikes on every large settlement in Ukraine in one night, everything turned upside down. In addition to losses in the form of soldiers and civilians, all the infrastructure necessary for life was destroyed hospitals, grocery stores, and small and large enterprises, thanks to which people could feed their families. During these 3 months, we have lost absolutely everything we have been building for so long and stubbornly throughout our lives.

So how did all these actions affect the economic condition of not only our country but of the country of the attacker

However, a change in demand is not only according to the change in the price, there are lots of other factor, such as people’s income, price of substitute, the taste and preference of consumer and the number of consumers.

Written by Jiaxin Yang

How sanctions can destroy a countries economy My country is currently going through a tough time in its history. Since our bordering country, which we considered a brotherly people,

1.The goal of a bill planned by US senators and the US Treasury to block Russia's gold reserves of about $132 billion is to exclude all opportunities for Moscow to mitigate the effect of previously imposed restrictions. Such actions by Washington directed against Russia could destroy the entire nancial system created for 75 years. This makes it harder for Russia to pay off all its external debts, in which case the country will be announced an economic default. It happened in 1998 after the collapse of the USSR when Russia was considered the largest debtor in the world. A debt of more than $200 billion was considered simply an unattainable amount. Some economic impacts of war are in ation, psychological cost, the decline in the working

population, damage to buildings/ infrastructure and many others. It is stated that Russia spends an estimated $900 million a day on the Ukraine war. Imagine if all this money were spent on innovations and development but not its internal devastation. In connection with the aggression from Russia, all the members of the European Union and the Far West (America) have imposed destructive sanctions on the country's economy that deprive its right to the future. The rst step was blocking the use of the country's gold reserves for any external payments. The second step was disconnecting the country from SWIFT. And the third one, the most crucial, was imposing the gradual embargo on oil supply to the countries of the EU. In other words, loss of $110 billion of yearly income. Let's look at what damage each of the above sanctions brings to Russia 2. SWIFT - is an international organisation that controls the interbank system for making payments and exchanging information. The slowdown in international transactions affected almost all areas of the economy: the supply chains of goods were disrupted, which led to a shortage of imports and, as a result, rising prices. A rise in prices is a fall in the rating of government and living standards. Naturally, all these consequences also affect the national currency - the dollar and the euro will increase sharply. At this point in time, there is no signi cant growth of the rubble against the dollar/

29 JUNE 2022

euro, but this is only a matter of time since the state will not be able to arti cially maintain the exchange rate for a long time.

Should the government introduce online sales tax in the UK

3. The consequences of an oil embargo are similar to those of a country's disconnection from SWIFT. The export of natural resources, which at one time brought a substantial part of Russia's income, is decreasing in enormous volumes. The country can no longer be a competitor in the world market. The price of all bonds of companies trading in natural resources will gradually approach zero, as Western investors and even domestic ones will not see any potential.

Decline of the high street There has been a huge decline of the high street due o the recent global pandemic with people not being able and unwilling to come out. This has resulted in a signi cant drop in footfall with 14% of retail shops being vacant. This led to a decrease in demand for goods and services. A signi cant fall in customers then led to store closures as the businesses were not able to make any revenue which resulted in around 64% store closure in the past 2 year.

In addition to all of the above, thousands of companies of world brands have ceased their activities. Ranging from the production of clothes to the production of luxury cars. That is hundreds of thousands of jobs; billions of taxes are lost. The supply of the components was cut (recyclables, chips, etc.), and it shortened the manufacture of almost everything in the Russian Federation

Rising of online retailers: The online retail has grown by 200% because consumers prefer online retail as it is more convenient, faster for the customers (consumer taste). It is expected that by 2025 Amazon will be the UK’s largest retailer surpassing Tesco. Also, there are likely to be more online retailers coming, such as Getir and Gorillas (grocery deliveries).

I consider that in the 21st century, the thought of starting a war is not acceptable. However, even if we discard all prejudices, those economic levers that can be now acted upon to cool the aggression of a particular country can fundamentally change not just the outcome of the war but also its entire Written by Dmytro Chumakov

As a result, the rising popularity of online retail and the decline of the high street have led some to argue that there should be an online sale tax in the UK retail sector. This is because in the recent years, the tax revenue has not kept up with the government expectation due to the recession in the UK with retail sector taking up quite a substantial proportion of the government tax revenue. Some believe that is sensible to apply online sales tax to increase government tax revenue with online market growing at a rapid pace.

growing at a rapid pace. By applying a online sales tax, the government tax revenue will increase. Higher tax revenue means that the government is then able to spend more on improving the living standards such as improving infrastructure. Con icts involving online sale tax: Online retailers have argued that online sales tax is an indirect tax on consumers. Indirect taxes are those imposed by a government on goods and services, but it is passed on to the consumer as part of the purchase price of a good or service which means it is consumer burden. They are insisting that online is an opportunity, not a threat. After a recession, households are struggling due to high living cost and lower income caused by unemployment. This means that the goods and services provided online at low price can help the economy to recover. This then leads to higher aggregat demand due to higher consumption. Therefore, online retailers are strongly implying that the introduction of taxes will reduce aggregate demand which slows down economic recovery Should it be introduced? The effectiveness and the format of the online sales tax should be thoroughly examined, but it is de nitely needed to bring back the 'balance' between the traditional and online retailers.

Written by Junseong Kim

29 JUNE 2022

Business News Train strikes In the month of July business has been affected by many factors. One of which was the train strikes at the end of the month. These train strikes could cost tourism leisure and theatre industries more than £1 billion. The disruption is being caused because train workers in the RMT are calling for a 7% pay rise, well below the current 11% in ation rate, better, safer working conditions, safe pensions, and a redundancy agreement. Negotiations began between the rail companies, unions, and government but no solutions were found. This has left many people worried about possible future rail strikes that RMT could hold.

What is the result of this strike Economics: With UK business growth at a 15action on businesses? The rail strikes affect business mainly due to a lack of footfall. Small businesses take a hit because without the trains running to London and other parts of the country consumers cannot get into stores and spend their money. This has also raised the question for other underpaid and under-appreciated workers such as nurses and teachers threatening industrial action.

month low, number of un lled jobs at all-time high, average regular earnings down 2.2%, and in ation showing no signs of slowing, the cost-of-living crisis is in full swing putting the word recession on the tips of everyone tongues. This fall in consumer consumer con dence has disproportionally hurt small and medium sized businesses in the UK.

This down to many factors such as the depreciation of the pound, making import prices much higher, construction costs rising and the rise in price for diesel which is used for most sole traders. This sharp rise in costs is leading UK businesses to taking less risks which has led to a drop in investment as well. All these factors hurting the private sector without even mentioning the harmful effects of Brexit, increasing the cost and time of UK European trade between businesses. The best the chancellor The graph above shows median annual pay of rail worker salaries of the Exchequer can offer is an additional £15bn to his package of from 2011 to 2021 support, but rejected many small and medium businesses calls to offer subsidies. Written by Ted Jenkins

29 JUNE 2022

Politics A tumultuous few weeks, indeed, months for the JohnsonConservative government. It was on Monday 6* June that Johnson was treated to a vote of con dence in his leadership of the Conservative Party and thus the UK government. The vote was called after more than 54 letters of no-con dence were submitted by Conservative MP's to Sir Graham Brady, Chair of the 192 backbench Committee - which offers oversight over the Parliamentary Party. If enough Conservative MP's voted against Boris Johnson, he would have been relieved of his position as UK Prime Minister and leader of the party. At around 9PM on Monday 6* June, the result was announced, and Johnson had won the vote 211 (for) - 148 (against). The Prime Minister has at present, lost the con dence o 148 of his own MP's. Whilst this is not enough to have him removed from of ce, it shows a huge revolt against his premiership and discontent in many Conservative constituencies. Mr Johnso called it a "convincing land] decisive result." The vote itself is the result of months of unrest from the likes of the Partygate scandal, Sue Gray report and failure to tackle the cost-of-living crisis. It has most certainly offered the opportunity for opposition parties such as Labour and the Libera Democrats to take precedent, if only they can produce policies which entice the British electorate.

Week commencing 20* June the rail unions voted in favour of strike action regarding pay and conditions. Disruption has been seen all week and country-wide, as the 3 chosen days Tuesday 21* Thursday 23 and Saturday 25* span across the week, with services unable to return to normal in th interim; only 20% of trains have operated in limited windows. On Saturday 25* 40,000 members o the RMT (Rail and Maritime Transport Workers Union) went on strike with Great Western Railwa preparing to operate 11 Glastonbury-speci c services on Sunday to ease the burden on travellers. The pandemic and costof-living crisis has left many public sector workers with a real terms pay cut as in ation and interest rates continue to rise. With in ation presently around 9%, and estimated to peak at 11%, the unions are demanding a pay rise for workers in line with in ation. As of Sunday 26* the union has been offered a package of 3%, which falls around 8% short of their demand. Much o the discontent amongst the rail

industry is the result of falling footfall and demand for services as many choose to work from home. Rail revenues are still around f2billion pounds short of pre- pandemic levels. If the Transport Secretary Grant Shapps, the unions (RT) and the train operating companies fail to reach a compromise, disruption is forecasted to last around 6 months, affecting many summer travel plans. Electorally, for the Conservative's, public discontent regarding strikes could continue to anger voters well into the future.

Written by Joshua Morgan

29 JUNE 2022

Stocks Disclaimer: this is not nancial advic Investing in stocks has gone up

dramatically over the last 2 years, this is because of the Covid pandemic which has meant people had to stay home and therefore make a passive income. Many picked up investing as a hobby, investing in penny stocks which have high risk and low reward; however, some stocks and coins can make huge pro ts. In the last month the stock market has been on a downturn with events such as fuel prices rising and the war in Ukraine effecting how much people invest.

In the last month stocks such as Apple have fallen £7.98 (-5.33%), Bitcoin has fallen £6,370.13 (-26.74%), Ethereum has fallen £6.69 (-0.67%), the S&P500 took a hit this month with a low of £3666.77 on the 16th of June, however, it is expected to keep its consistent growth. The infamous Tesla stocks have been uctuant ever since Elon Musk’s takeover of Twitter, but between the 27th of May and the 27th of June Tesla has gone up £106.20 (+16.50%). Lastly, Meta stocks are down $24.97 (12.80%) over the last the 30 days. Written by Rob Ireton

29 JUNE 2022

Notices and advertisements Economics society

Krispy Kreme Doughnut Sale

The aim of the economics society is to gather on a bimonthly basis for about 40mins to discuss current affairs around the world. The society’s hope is for every member to come out of the discussion feeling like the knowledge they gained can be used to supplement their analysis of long essay questions in an Economics exam and improve their understanding of the economic environment of countries across the globe. There will be hosting of speakers from other schools and organisations, either via Teams or in person, organising trips to the Bank of England, Houses of Parliament, and other major institutions, providing school visits are permitted. Finally fundraising events could be held to support local and global communities. We endeavour to support the values of respect, integrity and enthusiasm.

Date : Monday 4th July 2022 Time: Lunch Location: Lime Tree Quad Please come along to the Krispy Kreme sale in support of Chartwell cancer trust. Cash and card accepted. Eat tasty doughnuts while helping a worthy cause.

Values: 1. Respect 2. Integrity 3. Enthusiasm

Kinshing Huo

29 JUNE 2022

The Team Robert Ireton - Director, Co- chief Editor, Stocks Correspondent Ted Jenkins - Co- chief Editor, Business Correspondent Samuel Charvet - Economics Correspondent Joshua Morgan - Politics Correspondent Miles King - Editor Patson Ngomez - Editor