PEB
January 2024
THIS EDITION Top Stories
PEB Worldwide
Sports
Sam Bankman Fried’s FTX Scam
Hong Kong’s Economy
Sports Leagues & Teams: How are they Run?
GTA VI: The Most Anticipated Game of the Century Girl Math- How Girls Process their Finances
Russia’s Economic and Political State since 2000
The Saudi Pro League’s Investment The Las Vegas Grand Prix: A Car Crash or Economic Triumph?
1
1
Sam Bankman Fried’s FTX Scam Sex, lies and scandal will always remain present among Manhattan’s elite. In the last year it was Sam Bankman Fried and the scam of his company: FTX. Sam Bankman Fried (SBF) rose from less than humble beginnings as being a legacy from Stanford. He graduated from there with a degree in physics. He entered the trading world at Jane Street Capital, a wellrespected trading firm. He began crypto currency founding Alameda Research, a cryptocurrency trading firm, this led to the establishment of FTX in 2019. He became the face of the crypto currency movement, and his elusive personality gained intrigue from investors all over the world. Several celebrity partnerships like a $55 million partnership with Tom Brady and his supermodel girlfriend Gisele Bundchen, allowed FTX to increase in reputation. Sam Bankman Fried was an advocate for transparency and innovation in the market. However, there were underlying concerns with the relationship with these two companies FTX and Alameda Research. It all fell apart in November 2022 when it was found out that Alameda’s balance sheet was underpinned with FTT the FTX token.
This set off the questioning the interdependence of the two companies. The balance sheet showed that Alameda’s 5.82/14.6 billion of assets 40% were FTT a token created by SBF instead of an independently stable coin/token with a market price or an affiliattion with a reputable bank.
PEB PEB COMPETITION! AMAZING PRIZES! MORE ON PAGE 11
GTA VI: Great Expectations
This worsened when Binance intended to liquidify their assets in FTT coin. This After 10 years of anticipation GTA VI is caused the value of FTT to crash, causing finally on its way. Its trailer, released on 4th customers to panic December 2023, was a massive hit. It withdraw assets amounted to more views in 24 hours than and liquidify their GTA V’s has ever got amassing a huge 107 shares in FTX. million watches by eager fans. It introduced This did not a whole new map (in the original Vice happen as the firm City), two new characters (Jason & Lucia) revealed they did and all new graphics sure to attract the few not have the fans that were on the fence about purchasing capital to uphold the withdrawals. At the GTA VI on its release in 2025. day of the crash it was found that FTX only The Price had $900 million assets and $9.4 billioin in liabilities. This caused FTX to crash into As there would be, there have been many bankruptcy. rumours about the price of GTA VI. On November 11th, 2022, SBF resigned as CEO and the next day FTX admitted to the disappearance of $1-2 billion of customer funds. A year later the SBF trial began on October 3rd, 2023, with SBF pleading Not Guilty. A month later, on November 2nd, 2023. A jury found him guilty on all seven criminal counts against him. He now faces a maximum sentence of 115 years in prison. His sentencing is scheduled for March 31st, 2024. There have been rumours ranging from £40-
By Isaac Hayden
£120. However, Rockstar- the creator of the GTA series- has said a price of around £55 or higher would be fair with the experience GTA VI is looking to offer.
Looking at the trailer GTA VI is looking to offer a lot. High quality graphics, an amazing storyline and all new features are a part of what's to come and with that a £50-60 price tag wouldn’t be bad.
For retailers such as GAME (and its US counterpart- GameStop) it could be the save that they need. Due to the introduction of Estores (such as the Microsoft store on Xbox and PlayStation store on PlayStation) in the early 2000s in person retailers have suffered and have been on slippery slopes.
What GTA V Tells us
People find it easier, more accessible, and even cheaper, sometimes, to purchase their games from Estores as it is directly on their console. However, games such as GTA V, Forza and Spiderman have released limited edition copies only available in store and for such a historic game, fans are going to want to own one if they can. This would bring customers back into physical stores.
GTA V’s performance tells us quite a bit about what can be expected in terms of the sales of GTA VI. Over the years GTA V managed to accumulate 190 million sales in the 10 years it's been out. As seen in the graph the game hasn't seen less than 10 million sales in a year proving its popularity is immense. This also proves that GTA VI is going to do amazingly well as the game base has expanded so much as players have gotten older and can finally purchase the game. According to the BBC, industry experts estimate that GTA VI could clear £800 million in the first 24hrs, approximating to 150 million copies at a price point of £55. Then there is the wider world to take into account including the US, Brazil and the rest of Europe expecting huge sales of GTA VI. Looking into the future this could grow even more as players get older and as GTA VI moves to PC in the months/years after its release. What will it do for business? For Rockstar it will possibly bring one of the highest earning days in their history. Possibly continuing for weeks and months after.
Summary GTA VI is looking to do amazing numbers and that's all the credit to Rockstar. The graphics look of the highest quality, the storyline looks better than ever and there are features that are innovating gaming. We look forward to 2025.
By Hayden Randall Girl Math- How Girls Process their Finances. Girl math is an online trend where ‘girls’ justify large spending purchases. This phenomenon originated on TikTok with Beth Anne Brice, who explained that she had $5 in cash, which was rare as she doesn’t get paid in cash. So, she decided to go to Starbucks and spend it as the loss of $5 would not appear in her bank account. This was the basis of Girl Math as the appearance of saving money/having more money in your bank account which alleviates the pain of the visible loss of such a large sum.
8
2
How It works: In this example we will use this Miu Miu vest.
1. Since you’ve already decided to buy this article and is on sale then you’ve already saved £130 by not buying it at the full retail price on the Miu Miu website. This means that when buying you will see -£720 instead of -£850. 2. It is all about Cost Per Wear. If you decide to wear this eighty times, then it would cost £9 per wear. As it is winter you should layer this vest this a cardigan or hoodie and when in the summer, you’ll make the Cost Per Wear practically free. 3. When you’re wearing this top between 1-80 wears costing £9 each time. You should consider other costing variables for example your Starbucks latte and muffin, when wearing don’t buy your Starbucks coffee and muffin so then you’re top is essentially free as you are spending the same amount of money on coffee as you would on this top. This makes your purchase free! 4. Last part! Always remember to memorise the digits of your parents’ card because your money is your money, but their money is our money!
By Isaac Hayden
PEB WORLDWIDE Hong Kong’s Economy
Prices and Inflation
Russia’s Economic and Political State since 2000
The Hong Kong economy continued to recover in the third quarter of 2023, supported by inbound tourism and private consumption.
March 26, 2000 – Early presidential elections
The underlying consumer price inflation rate remained moderate in October. Prices of meals out/takeaway food and clothing/footwear continued to increase visibly over a year earlier than predicted. Looking ahead, inbound tourism and private consumption will continue to underpin economic growth for the rest of the year. More visitors could be received as handling capacity recovers further. Yet, the difficult external environment amid increasing geopolitical tensions and tight financial conditions would continue to weigh on exports of goods, investment and consumption sentiment.
External sector and Exports Overall, export performance largely remained weak. Exports to the Mainland and the United States rose, while those to the European Union continued to fall considerably.
Acting President Vladimir Putin managed to win over his competitors in the first round, gaining 52.9% of the vote. On May 7, 2000, he was inaugurated as the second President of the Russian Federation.
After that, the development of private business in the country slowed down sharply. The business structures of Putin's Price pressures on other major components friends began to gather the main business in the country. remained broadly in check. March 2014 – Reunification of Crimea with External price pressures are expected to reduce. While domestic business cost might Russia face some upward pressures as the On March 16, 96.77% of the peninsula's economy continues to revive, it should residents voted in favour of reunification remain contained in the near term. The Government will continue to monitor the with Russia in a referendum on the status of Crimea. situation. Strategic Position Hong Kong is one of the most servicesoriented economy in the world, with services sectors accounting for 93.4% of the GDP in 2022.
On March 17, the Supreme Council of Crimea declared the republic an independent state and appealed to Russia with a proposal to accept it into the Russian Federation. On March 18, an agreement was signed on the admission of the Republic of Crimea and the city of Sevastopol to Russia.
According to World Trade Organization (WTO), Hong Kong is the world's 10th largest exporter of merchandise trade in 2022, as at the end of March 2023, Hong March 2014 – The introduction of sanctions Kong's stock market ranked the 4th largest by the United States and its allies against the Russian Federation in Asia and the 7th largest in the world, with the total market capitalisation The first sanctions were of a "personal" reaching US$4.7 trillion. nature and consisted in restrictions for specific Russian politicians, Hong Kong is an important banking and businessmen, banks and enterprises. In financial centre in the Asia Pacific. Hong the future, the list of sanctions measures Kong is the 4th leading global financial against Russia was constantly expanding. centre, according to the Global Financial Centre Index (33rd edition, Mar 2023). 2020- Covid-19
By Mina Chung
Covid 19 was in full swing, prices began to rise, employers began to cut staff, and many residents switched to remote work.
Those to other major Asian markets recorded mixed performance. 8 3
February 2022- The beginning of the Russo-Ukraine War The beginning of hostilities on the territory of Ukraine. Russia was gradually sanctioned, more than any other country in its history, as well as the closure of borders and the termination of most working relations with European countries.
2023- Demographic Issues The age balance is so heavily skewed the government is asking people to have more children and offers to increase their pay for each birth.
By Vladislav Ageev
PEB Competition! AMAZING PRIZES TO WIN! Answer the simple quiz to enter! (More On Page 11) 8
SPORTS Sports Leagues & Teams: A sports league is like a big show where teams compete fairly, money is managed How are they Run? wisely, rules are followed, and fans are part of the fun. All these pieces come together to Running a sports league/team is a make sports enjoyable for everyone. complex task that involves various skills. It is not just about sports, but Example: F1 also businesses and media. In the world of F1 racing, teams like NFL, W/NBA & NHL McLaren, Ferrari, and Red Bull need skilled drivers. One important part is choosing players for teams which, for some They don't leagues, happens in a draft. This just hire helps make sure all teams have a them; they fair chance of winning. participate in a selection process called the driver Next, the league plans when and market. This is like a big choosing game where teams will play. They must where teams pick drivers to join their racing think about things like travel and squads. Once the drivers are selected, F1 rest to make sure it's fair for plans a schedule for races around the world. everyone. The best teams then compete in the playoffs to find the The best-performing teams in races earn winner. points, and at the end of the season, the driver and team with the most points Money & Pay become the champions. Money is a big deal too. Leagues & Money matters a lot in F1. Teams get funds teams make money from things from sponsorships, merchandise, and TV like tickets, merchandise, and TV rights. They use this money to design and rights. They must be careful with build faster cars, pay their drivers, and how they spend it on things like maintain a top-notch racing team that can player salaries and keeping stadium compete for the championship. expansions. Successful teams can reinvest profits to stay competitive. To keep things fair, there are rules about how much teams can pay To maintain fairness, F1 has rules about the their players. This makes sure that design of the cars and limits on how much one team doesn't spend way more. teams can spend. This prevents one team from spending much more than others. Fan Engagement During races there are also strict rules and Making fans happy is super race officials ensure that everyone plays by important. Leagues & teams use them. social media and events, to connect with fans. They also use technology to make watching games more exciting, like using special cameras or computer programs. 4
Fans are a big part of F1, too. The sport engages with them through social media, events, and innovative technologies. For example, they use advanced data analytics and in-car cameras to give fans exciting insights into the races.
In summary, Formula 1 combines selecting drivers, fair scheduling, managing finances, enforcing rules, and connecting with fans to create the high-speed, thrilling special experience that fans around the world enjoy.
By Kevin Sheng The Saudi Pro League’s Investment The Saudi Pro League has been a hot topic recently in the footballing world with owners spending hundreds of millions of pounds trying to persuade some of the best players to join their clubs. However, this has not come without controversy as the countries human rights and laws have raised serious concerns among the world as the authorities have been targeting individuals who have been peacefully exercising their rights to freedom of expression, as well as human rights defenders being harassed in prison and there has been unfair trials where children have been given the death penalty.
The spending of the clubs has been One of the main attractions for the players heavily influenced by the looking to move to Saudi Arabia is the huge government (for example with Al- salaries. One clear example of this is Jordan Nassr being owned by the public Henderson who was previously the captain investment fund) as they have been of Liverpool football club and started most funding the clubs so that star games with a salary of £200,000 a week. To players such as Cristiano Ronaldo most people, such as yourselves, this would and Neymar Jr would make the appear to be the dream. You get to play for move to play in Saudi Arabia. one of the best clubs in the world, winning Their reason was that the star esteemed trophies like the champions players would increase the number league, and having your name in the records of tourists coming to their country as a great captain to your team. However, as there would be billions of people for Henderson, he decided to give it all from all over the globe who away and ruin relationships with the club to get a bit more money.
wouldn’t normally go to Saudi Arabia without these amazing players there. The £700,000 a week he is now earning at As seen in the graph, the Saudi Pro Al-Ettifaq has clearly affected him a lot as League gained an astonishing total he left Liverpool without a second thought of approximately 1.55million and has now had a series of interviews followers in the first two quarters talking about how “no-one at the club of 2023, around the time when wanted him to stay” which is clearly not Ronaldo was signed by Al-Nassr. true as he was a prolific figure in the squad. In the summer alone the league The top 3 earners are Neymar Jr who gets spent $1 billion which is the second £2.65 Million a week (£138 Million per most in the world. year), Karim Benzema who gets £3.58 Million a week (£172 Million per year) and The main summer signings have in first place is Cristiano Ronaldo who gets been; the Ballon d’or winner£3.6 Million a week (£177 Million per Karim Benzema, Sadio Mane, year). Jordan Henderson, and of course, Neymar Jr who have all joined the In one week, these players are earning more Saudi Pro League alongside than 6.4 times what the average person in Cristiano Ronaldo who made the the UK earns in their lifetime. move in January.
8
5
Overall, the Saudi Pro league has invested almost a billion into world class football players with help from the Saudi government in the bid to boost tourism and increase the country's external income and they aren't stopping yet.
By James Farrell The Las Vegas Grand Prix: A Car Crash or Economic Triumph? Approximately two months on we look back at the lead up, adventure and aftermath of the Las Vegas Grand Prix with all its controversy, but also at what it did for the entertainment capital of the world. Lead up. In the build-up to the clash of Formula One’s pure European track car racing and the American show business of Las Vegas things were not looking positive. Locals and fans became furious at the event, criticizing Formula One while calling it a ‘cash grab’ as ticket prices varied from $1,500 for 3 day passes to $5million for the ultimate experience with hotels included.
8
The main controversy around the Also, while suggesting fans just wanted to prices is that the average cost of a get "s***-faced". 3-day pass to all the F1 races on the 2023 calendar is $445, without the Las Vegas Grand Prix, and $500, including the Las Vegas Grand Prix. As seen in the graph the Las Vegas tickets were outrageously more expensive than others priced $500 above the next highest. Lights Out At the same time residents became increasingly disgruntled by the traffic the construction caused and that wasn't the end of its disruptions.
After all the backlash surrounding the race, it had a lot to prove but it didn’t get off to the best of starts… In the weekend's first practice disaster struck as Carlos Sainz’s Ferrari got the bottom ripped off it as a manhole cover on one of the roads of the Bridges were blocked causing half track came loose and came up ruining the an hour to be added on to the first session within just eight minutes. simplest of commutes, footbridges constructed had deliberate screens It took five hours to fix as they had to check to block visibility, so no every other manhole cover on the track. It construction of the track was seen, cost Carlos Sainz a penalty due to having to and trees were even ripped out of replace the ground for the constructions of parts of stands. It’s safe to say Formula One his car. had its own interest at heart. It meant Although hotels, casinos and that for restaurants located around the track the in places such as the world-famous second Las Vegas strip looked to prosper practice stands were empty. Fans had been from the event greatly they weren't told that it was unsafe to be around the track out of the firing range of who and then were not allowed back. Fans that would be negatively affected. had paid extortionate prices for even a day Formula One looked to charge the pass were scammed out of what was businesses that had undisturbed rightfully theirs as part of what they paid for views of the track, such as Planet their tickets. Formula One insultingly Hollywood, $1,500 per head that offered only £160 of merch vouchers for entered their premises over the 3 single day passes and offered nothing to days. That would have cost the those who paid for three-day passes. A class larger hospitality providers action lawsuit has been filed aiming to get approximately $1.5 million per fans what they deserve in compensation, but day. Eventually, this was lowered it may take time for us to see an outcome. to $50,000 per venue which would hopefully allow these businesses to Contrary to the abysmal lead up and start to earn a profit over the 3 days. the weekend the Las Vegas grand prix has been argued by fans to be one of the best of Lastly, in the build-up drivers the 2023 season. It featured countless decided to share their views on the overtakes that were beautifully executed, biggest sporting event of the year. unexpected drivers had near perfect One of them, Max performances and there weren't any Verstappen (2021, 2022, 2023 unprecedented stoppages such as in driver’s world champion), practice. compared the Las Vegas Grand Prix to the lowest English football League saying: “I think Monaco is like the Champions League, this is the National League”. 6
After the Checkered flag The race may have been over, but it wasn't the end of disruptions. It was predicted that dismantling would take just up to New Year’s Eve.
from helping the local area and to the businesses located near the strip. In addition, the disruptions may have been lengthy and felt inadequate, but residents will benefit hugely from the economic boost it has provided.
The disruption the construction produced forced Formula One to apologise over the construction residents stating that the work in following years won’t be as impactful.
Overall fans must admit they were wrong. After all the mockery online, the Las Vegas GP turned out to be a homerun of an event and we hope to see more spectacular races from the entertainment capital of the world in the coming years.
Even though they showed distaste at the start, residents must be happy with what the race did for their local area. It was estimated that the race generated $1.3billion for Clark County in which LV is located. The huge injection will give the area the ability to invest to make the worldfamous city better and attract even more business in the future. The “biggest sporting event of the year” even helped local businesses, such as Planet Hollywood and MGM Resorts, massively due to the number of tourists it attracted filling the hotels giving one Strip hotel its highest-grossing weekend ever.
By Hayden Randall
Jokes, Riddles & Puzzles
Q: I have branches, yet I have no trunk, no leaves and no fruit
Q: What did the socialist get from economics? A: Top Marx
What am I? A: A bank
Q: Why did the balloon prices Q: Why is it so easy for an elephant to get a Summary The race may have been criticised from the start, but it pleased all those watching and provided excellent entertainment. From an economic and business standpoint it did wonders 8
job? A: It’ll work for peanuts
7
rise? A: Inflation
PEB puzzle
Investment Equilibrium Inflation Deficit Unemployment
Surplus Macroeconomics Market Exchange Rate Trade
Answers in the Next Edition!
PEB COMPETITION! Prizes for both Yr 7-11 and Yr12&13 Prizes for 1st 2nd and 3rd Answer the simple PEB 1st edition quiz (via the QR code)
Good Luck!
Feedback Form
Let us know how we’ve done.
The Team Publisher- Hayden Randall Co-editors- Hayden Randall & Isaac Hayden Journalists: Hayden Randall Isaac Hayden James Farrell Mina Chung Kevin Sheng Vladislav Ageev Puzzle man- Kevin Sheng Front Cover- Katja Wilndle
11
