TrumpThe shock election of Donald Trump as the 45th President of the United States has been dominating the mainstream news, but King & Wood Mallesons has once again been hogging more than its fair share of the legal headlines during the past week.

Fresh from the news that the verein firm had sought a tie-up with potential US suitor Morgan Lewis, KWM's new European leaders returned from China to put a potential rescue plan to partners in the embattled legacy SJ Berwin business.

European partners must commit to pay in £14m in capital and agree to a 12-month lock-in, in order to secure a financial lifeline from the firm's Asia-Pacific partners. The potential deal, which needs to be approved by next week, comes as partners must also decide on a new leader for the firm globally, after global managing partner Stuart Fuller announced his intention to step down at the end of this year and return to practice in Sydney.

Elsewhere in Europe, Addleshaw Goddard has moved a step closer to finding its long-sought Scottish merger partner, confirming that it is in discussions to combine with the Scottish offices of the UK's first listed law firm, Gateley, known north of the border as HBJ Gateley. The discussions come after talks between Addleshaws and Maclay Murray & Spens ended earlier this year.

News of the merger talks comes amid a period of long-overdue consolidation in the legal market, with US firms Kaye Scholer and Arnold & Porter confirming last week that they will go ahead with their union.

How these deals and the pending three-way merger between Olswang, CMS and Nabarro pan out will depend, to some extent, on the impact of Trump's election on the global economy and international trade. Legal Week canvassed a number of law firm leaders in the City and while opinion was divided, some believe the impact will dwarf Brexit.

Other highlights on Legal Week last week: