BUSINESS LIVE: S&P cuts BP credit outlook; BATS hit by illegal vapes; Checkit swoops on Crimson Tide

The war for talent at leading law firms shows no sign of slowing as experts predict junior pay could soon top £200,000 a year – far more than the prime minister.

An elite group of US firms has increased pay for newly qualified staff in London to as much as £180,000 as salaries soar on both sides of the Atlantic.

And UK rivals in the so-called Magic Circle – five of the most prestigious London-based firms that historically dominated the legal scene – are offering junior lawyers up to £150,000 a year as competition intensifies.

British American Tobacco expects a small decline in half-year revenue and adjusted profit from operations, with the group pinning the blame on the illegal vape trade in the US.

The maker of Dunhill and Lucky Strike cigarettes has been forced to temper its hopes for revenue and profit growth as it grapples with a tough environment in the US, one of its key markets.

There, both the company’s traditional tobacco business and its portfolio of newer products such as vapes are struggling as users switch out its more expensive brands for illegal disposable vapes or cheaper cigarettes.

The company said while the US was showing some early signs of recovery, consumers traditional cigarette volumes were down 9 per cent so far this year across the industry.

Boss Tadeu Marroco said: ‘We expect our performance to be second-half weighted, mainly driven by wholesaler inventory movements related to continued investment in our US commercial actions, as well as the phasing of new launches.

‘Our guidance also reflects ongoing macro-economic pressures, particularly in the US market and continued lack of effective enforcement against the growing illicit vapour segment.

‘As a result, we expect our H1 revenue and adjusted profit from operations to be down by low-single digits on an organic, constant currency basis.’

Shein is set to launch its £50billion stock market listing in London in the coming days despite concerns over working conditions at the Chinese firm.

The online fashion giant, which was set up in Nanjing but is now based in Singapore, could file papers as soon as this week in a major boost for the City.

London has been vying with New York for the blockbuster float which would see Shein soar straight into th

e blue-chip FTSE 100 index.

S&P Global has revised BP’s credit outlook lower, with the ratings agency citing slower than expected debt reduction, in a blow to boss Murray Auchincloss who has sought to win back investor support following a turbulent year.

Auchincloss took the reins in January with a vow to take a pragmatic approach to steady the company after a bruising period that followed the abrupt resignation of predecessor Bernard Looney last September.

The former head of finances under Looney has sought to simplify BP’s operations and cut costs in the face of investor doubts over plans to reduce the company’s focus on oil and gas and expand a low-carbon business.

S&P downgraded the energy company’s credit outlook to stable from positive while affirming its ‘A-‘ long-term and ‘A-2’ short-term issuer credit ratings.

‘BP’s updated cash allocation strategy is less likely to result in meaningful further absolute debt reduction,’ S&P said in a statement.