I'm not really an expert but, depending on what you consider to simply be economic knowledge vs commercial awareness, the most immediately applicable situations are increased transactional work because the cost of borrowing (i.e. most types of finance work) is cheaper, which means more deals and a potential for 2026 to deliver a more active dealmaking environment than this year (which was subdued because of tariffs and geopolitical uncertainty, and now discussions of an AI bubble). So this can translate to the things you've mentioned re financing arrangements, M&A, restructuring debt to more borrower-friendly terms, generally speaking more investment because money that sits around (e.g. dry powder in PE) doesn't generate as much interest anymore.
I think that for commercial law firms, it's really about understanding who their clients are and how this would affect their clients, and in turn how it affects the law firm's workstreams, revenue etc. You could maybe even argue that the BoE cut interest rates because they trust that inflation is falling. This is a vote of confidence in the UK economy and current govt economic policies. This could maybe spur increased economic activity and growth, which in turn means that the UK might see more foreign investment.
That then opens up to things like maybe international trade in Akin/
Mayer Brown, or competition/antitrust in many firms re FDI and national security rules, so these firms are well-positioned to get ahead and pitch for client work in these areas by preparing thought leadership pieces or selling their expertise to clients before they even know they need these services, which then introduces new workstreams to the business, hence more revenue and profit.
Just broadly speaking, "transactional activity" encompasses so many practice areas so it really depends on the specific firm's clients and strengths if you want to tailor it better as commercial awareness specifically in relation to that firm. These are my two cents really and I hope it helps, but I go back to the first bit I said about what you consider to be economic knowledge vs actual commercial awareness.
