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Global M&A activity rose by 10% in the first nine months of 2025, reaching a total of $1.938trn, according to a report by the Boston Consulting Group. Despite challenges from geopolitical tensions and U.S. tariff policies, dealmakers have continued to pursue strategic opportunities, although the figures remain over 40% below the highs seen in 2021. Notably, North America accounted for more than 60% of the activity, while Europe experienced a 5% decline, particularly in the U.K., which saw M&A value drop by 35%.

 

Reuters

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U.S. business activity has expanded in October at the second-fastest pace this year, with the S&P Global flash composite index rising to 54.8, driven by the strongest growth in new orders since early 2023. Manufacturers saw the largest pickup in bookings since February last year, while services also gained momentum. However, employment growth was subdued, with factory hiring falling to a three-month low and service sector job growth barely improved. Input costs remained high, but firms eased selling prices, indicating growing competition and weak export demand. Factory inventories rose unusually amid flat backlogs and shrinking export business.

 

Bloomberg

Reuters

The Labor Department reported that the U.S. CPI rose 0.3% in September from August, putting the annual inflation rate at 3%. Economists polled by Reuters had forecast the CPI increasing 0.4% and rising 3.1% year-on-year. Excluding the volatile food and energy components, the CPI gained 0.2%, and 3% year-on-year. Energy prices rose 1.5% from August on a seasonally adjusted basis, driven by a jump in gasoline prices. Apparel prices rose 0.7% from August and household furnishing prices rose 0.2%, but toy prices fell slightly. Friday's report was initially scheduled to come out on October 15th, but was delayed because of the ongoing federal government shutdown. The agency recalled staff to prepare the latest release so the Social Security Administration could tally its annual cost-of-living adjustment, which will total 2.8% for next year.

 

Bloomberg

CNBC

Reuters

Wall Street Journal

According to a survey by the AICPA, 75% of accounting firms that hired in 2024 anticipate maintaining or increasing their hiring levels in 2025. Only 18% of firms expect to reduce their hiring efforts. This optimistic hiring outlook suggests a robust demand for accounting professionals, reflecting the industry's growth and the increasing complexity of financial regulations. For accountants, auditors, and corporate finance departments, the trend indicates a competitive job market with opportunities for career advancement and skill development. Firms may need to focus on attracting and retaining talent to meet their staffing needs effectively.

 

CPA Practice Advisor

The number of accounting graduates in the U.S. has decreased by 6.6% in the 2023-2024 academic year, according to a AICPA report. The decline is less severe than the previous year's 9.6% drop. Notably, master's degrees in accounting saw a significant 15% decrease, while bachelor's degrees fell by 3.3%. Jan Taylor, the AICPA's academic-in-residence, said: “While we continue to see a contraction in the supply of accounting graduates, it's encouraging the rate of decline has slowed year over year.” Despite the decline, enrollment in accounting programs rose by 12% year-over-year, indicating a potential shift in interest. However, the report also highlighted a drop in CPA exam pass rates, with only 13,070 candidates passing their fourth section in 2024, down from 19,382 in 2023.

 

Accounting Today

Journal of Accountancy

Amanda Dominguez, Chief Operating Officer at Wiss, highlights the significant impact of AI on the accounting profession, particularly concerning entry-level positions. The 2024 Finance & Accounting Talent Market Outlook revealed that 83% of senior leaders reported a talent shortage, up from 70% in 2022. As AI automates foundational tasks, entry-level workers face a 13% decline in employment since 2022, making it harder to secure jobs. Dominguez emphasizes the need for a shift in training methods, stating: "Rather than avoiding new hires . . . the accounting profession needs to rethink the foundational skills it teaches." To address these challenges, firms should implement AI simulations, redefine core skills, and broaden talent acquisition to ensure new accountants can thrive alongside evolving technology.

 

CPA Practice Advisor

AICPA has introduced Josi, an AI-powered research tool. This tool provides secure, direct access to AICPA's professional standards and authoritative guidance. For accountants, auditors, and corporate finance professionals, Josi represents a significant advancement in accessing critical information efficiently. By streamlining the retrieval of professional standards and guidance, Josi can enhance compliance and decision-making processes. The tool is particularly beneficial for those needing quick, reliable access to AICPA resources, thereby improving productivity and accuracy in financial reporting and auditing tasks.

 

Accounting Today

Journal of Accountancy

PwC is transforming its audit practices with new AI-backed tools designed to enhance the scrutiny of corporate America’s financials. The firm is investing approximately $2bn in this technological shift, which aims to allow auditors to focus more on identifying risks within clients' businesses. Kyle Maryanski, a PwC audit partner and next generation audit leader, said:  “It's a transformation of our entire audit practice.” The innovations are set to redefine how audits are conducted, emphasizing a more strategic approach to risk management.

 

Bloomberg Tax

Abacor, a New York City-based company founded by David Lam and Ying Xu, has introduced an AI assistant designed specifically for accountants. The innovative tool aims to eliminate manual tasks associated with client meetings, such as preparing agendas and capturing insights. The AI assistant transcribes meetings, generates notes, and integrates with practice management systems, enhancing efficiency and client relationships.

 

CPA Practice Advisor

KPMG has announced a strategic collaboration with Fieldguide, including a minority investment, to develop AI-driven capabilities for assurance services. The partnership aims to enhance precision, speed, and insights in audit processes. For accountants and auditors, the development signifies a shift towards more efficient and insightful assurance practices, potentially reducing manual workloads and increasing the accuracy of audits. By integrating AI, KPMG and Fieldguide are setting a precedent for the future of audit and assurance, emphasizing the importance of technological advancement in maintaining competitive and effective service offerings.

 

Financial Post

The IRS and the Treasury Department are proposing to eliminate the "domestic corporation look-through rule," which determines if a real estate investment trust (REIT) in the U.S. is controlled by foreign investors. The proposed change follows feedback from taxpayers who highlighted the complexities and uncertainties associated with tracing upstream ownership. The IRS said: "We share these concerns," acknowledging the operational challenges posed by the current rule. The new regulations would treat all domestic C corporations as non-look-through persons, simplifying the determination of whether a qualified investment entity (QIE) is domestically controlled. The move aims to align with congressional intent and reduce legal ambiguities in U.S. real estate investments.

 

Accounting Today

The IRS is encountering significant management and performance challenges for fiscal year 2026, as highlighted in a report by the TIGTA. The report reveals that the IRS's workforce has decreased by about 25%, dropping from approximately 103,000 to 77,000 employees between January and May 2025. Additionally, proposed budget cuts could reduce the IRS's annual funding by around 20%. "Completing IT modernization projects, providing quality service to taxpayers, and enforcing tax laws with a reduced workforce and budget will be challenging for the IRS," the report states. The IRS is also facing difficulties in transitioning from paper checks to electronic payments and adapting to new tax law changes, particularly the One Big Beautiful Bill Act. These issues may lead to delays in tax return processing and affect taxpayer compliance.

 

Accounting Today

Senator Thom Tillis (R-N.C.) remains determined to advance his proposed legislation targeting the litigation finance industry, despite the recent setback of his bill that aimed to impose a 41% tax on investors. “We're going to go after it,” Tillis stated during a Bloomberg Government roundtable. His Tackling Predatory Litigation Funding Act seeks to tax profits from third-party entities financing civil litigation at a rate of 40.8%. Tillis emphasized the need for equitable tax treatment, arguing it is “silly” that investors in lawsuits enjoy better tax benefits than the victims receiving awards. The proposed tax faced significant opposition from the International Legal Finance Association and other industry stakeholders, prompting extensive lobbying efforts. “I was impressed with the sheer amount of money,” Tillis remarked, acknowledging the strong pushback against his tax proposal.

 

Bloomberg Tax

As Texans prepare for the November 4 vote, Proposition 6 aims to amend the Texas Constitution to permanently ban taxes on securities transactions and occupation taxes on registered market operators. This would position Texas as the only state with such a constitutional prohibition, enhancing its appeal to traders and investors. Currently, Texas has no personal or corporate income tax, and the proposed measure seeks to solidify this tax-friendly environment. Supporters argue that it provides certainty to investors, while critics warn it may limit future fiscal flexibility. "Texas is swiftly becoming America's financial hub," stated Governor Greg Abbott, highlighting the state's efforts to attract financial services. 

 

Bloomberg Tax

The transfer of legal claims is increasingly common, raising various legal and tax considerations. When a claim is sold or assigned, the payment is typically taxable unless specific exceptions apply. Tax implications also arise when settlements are paid, particularly regarding who receives the payment and the necessary IRS Form 1099 reporting. Family transfers of claims can be part of financial planning, allowing income to shift to individuals in lower tax brackets. However, the effectiveness of such transfers depends on timing and the plaintiff's involvement. Additionally, some plaintiffs may opt to sell their claims to third-party buyers for immediate cash, often at a discount, which can simplify tax analysis. Proper documentation ensures that sellers are taxed appropriately on the sales price.

 

Forbes

Joshua Wander, co-founder of 777 Partners, and Damien Alfalla, the firm's former CFO, are facing federal charges, including conspiracy to commit wire fraud and securities fraud. The FBI alleges that they defrauded private lenders and investors out of over $500m. Alfalla has pleaded guilty to an unspecified charge and is cooperating with authorities. U.S. Attorney Jay Clayton said: “Wander used his investment firm to cheat private lenders and investors out of hundreds of millions of dollars.” Additionally, both men are named in a SEC lawsuit, which claims they misled investors about the firm's financial health while raising $237m. The SEC's complaint highlights that they were aware of a severe liquidity crisis, contradicting their claims of potential profitability.

 

CFO

Kirkland & Ellis has given its lawyers training on communication style as it tries to combat a reputation for uncooperative behavior in negotiations between its private equity clients and their investors.

 

Financial Times

This week, major tech companies including Microsoft, Meta, Alphabet, Amazon, and Apple are set to report their quarterly results, with a keen focus on capital expenditures related to AI. Investors are particularly interested in how these firms plan to allocate funds for AI infrastructure, especially as OpenAI has announced a staggering $1trn investment in AI development. Analysts expect significant growth in capital expenditures, with estimates suggesting a 24% increase for hyperscalers next year, reaching nearly $550bn. Each company is under pressure to demonstrate revenue growth alongside their AI investments, as they navigate the competitive landscape of cloud services and AI technologies.

 

CFO

CNBC

UnitedHealth Group is experiencing renewed investor confidence following the return of CEO Stephen Hemsley, who previously led the company from 2006 to 2017. Hemsley signed a three-year contract worth $60m in stock and purchased $25m in shares, signaling his commitment. Investors, including Warren Buffett's Berkshire Hathaway, are optimistic about Hemsley's leadership, especially as the company plans to exit several Medicare Advantage plans to enhance profitability. Bill Smead, chief investment officer at Smead Capital Management, stated, "If you're buying a stock that plummeted, you would like to know that the people running the business believe in it." Analysts predict a rebound in earnings, with expectations for a profit of $2.82 per share in the third quarter.

 

U.S. News

Online education company Chegg is laying off 45% of its workforce, or 388 employees, as it blamed the “new realities” of artificial intelligence and diminished traffic from search engines. Chegg also said it is ending its strategic review process and bringing back Dan Rosensweig as CEO. Rosensweig joined the company as CEO in 2010, before stepping down from the post in April 2024.

 

CNBC