Following in the footsteps of Allen & Overy, trainee retention at US firm Shearman & Sterling will suffer this year. The firm will only retain 9 of its 14 London trainees when they reach the end of their training contracts. With the professional services sector still seeing significant headwinds, we expect to see trainee retention suffer accross the board as firms seek to keep headcount and costs as lean as possible until the economy improves.

That’s not to say there are no signs of life out there – Shearman has landed a lead on a €3bn (£2.6bn) rights issue by French dairy and water company Danone. The company launched a public offering in France and Switzerland with an international private placement in a bid to reduce its debt.

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