1) Ashurst–Perkins Coie Merger

Ashurst (UK) and Perkins Coie (US) have agreed to merge, becoming the third major UK–US tie-up after A&O Shearman and HSF Kramer. Interestingly, this merger is being structured as a genuine 50–50 partnership: Ashurst’s CEO, Paul Jenkins, and Perkins Coie’s managing partner, Bill Malley, will act as global co-chiefs of the combined firm. This contrasts with the A&O Shearman merger, where A&O was clearly the dominant party, and more closely resembles the balance seen in HSF Kramer.

More broadly, this merger reflects a wider trend: UK firms are increasingly expanding into the US market. Perhaps this is partly a response to large US firms entering London and raising competition. Even firms not choosing to merge, such as Freshfields, are investing heavily in their US presence, as they aim to position themselves as global elite firms.

2) Government Borrowing & Economic Uncertainty

Public sector borrowing was over £2 billion more than expected by expert analysts last month. This indicates the uncertainty tied to government financing, which has a knock on effect on the wider economy.

Two main areas that are impacted are those of consumer confidence, and subsequently, retail sales.  A fiscal hole represents the gap between a government’s planned spending and expected revenue. In this instance, Rachel Reeves (the Chancellor of the Exchequer) will need to address a £20-30 billion shortfall in the upcoming 2025 Autumn Budget, due to be delivered this upcoming Wednesday. Naturally, this will mandate an increase in taxation, which is what is so detrimentally affecting consumer confidence, as households hold back on spending until the announcement.

For businesses, especially retail, this is a significant dampener on activity as businesses rely on consumer spending. The Office for National Statistics reported a 1.1% fall in British retail sales. When consumer spending drops, businesses often turn to additional financing to stabilise their operations, and banks, lenders, and law firms become involved in facilitating this. Additionally, law firms may have to support businesses with potential disputes if they are unable to meet their current obligations.