FTI Consulting News Bytes – 11 July 2025

FTI Consulting News Bytes

What a week! Between the CEO of X stepping down, Nvidia’s valuation reaching new heights, and a deepfake incident involving US secretary of state Marco Rubio, it’s been a rollercoaster week, not least for WPP who issued a profit warning on Wednesday, before announcing the appointment of its new CEO; we look at Reuters Breakingviews take on the news first. We then turn to UK fintech Monzo, which found itself in hot water with the UK’s financial watchdog over the inadequacy of its financial controls in previous years. We then investigate what has driven a surge in UK VC funding (spoiler alert: it’s AI), before delving into the EU’s new AI code of practice, which has caused controversy with top European business leaders. Finally, we end with OpenAI’s tightened security measures as fears of corporate espionage rise.  

This week’s news

WPP’s rollercoaster week

WPP named Microsoft executive Cindy Rose as its new chief executive officer on Thursday, after the Company issued a profit warning on Wednesday which sent its shares down more than 15%. Reuters Breakingviews quipped that the company gave investors the bad news first, before following up with the positive news of Rose’s appointment, though added that while Rose’s  tech credentials mean she may be able to better steer the group through AI disruption than her predecessor, Mark Read, a lack of ad industry experience could create new problems. WPP has been impacted by a tariff-driven economic slowdown and high-profile client losses, including Mars and Coca-Cola, while the threat of the impact of AI looms. Reuters Breakingviews questioned whether clients will come flocking to an agency group run by a tech executive, commenting that the appointment “may be a smart move, but it’s also a risky one”.  

Monzo in the (financial watch) doghouse

Suspected fraudsters who claimed to live at Buckingham Palace and 10 Downing Street were allowed to open bank accounts by Monzo, according to the Financial Conduct Authority (FCA). The Times reports that the FCA, who have handed the digital bank a £21 million fine, said that Monzo’s financial controls to stop money laundering had been completely inadequate. The regulator commented that some addresses proffered by bank account applicants were “obviously implausible”, adding that one successful applicant even used Monzo’s own business address in London as their home address. The main control failings took place between October 2018 and August 2020. Monzo CEO TS Anil commented “The FCA’s findings relate to a historical period that ended three years ago and draw a line under issues that have been resolved and are firmly in the past, with our learnings at the time leading to substantial improvements in our controls.”

Venture capital surge ignites Britain’s AI boom 

UK venture capital funding surged ahead of its European counterparts in the first half of 2025, with total investment reaching over $8bn, driven largely by a booming AI sector. According to City AM, AI startups alone attracted a record $2.4bn in VC funding, 30% of all UK raises, highlighting the sector’s growing dominance and resilience amid global uncertainty. Adding to this momentum, Bloomberg highlights a growing trend of “AI rollups,” where VC firms are acquiring and consolidating smaller companies across sectors, then layering in AI to streamline operations and boost profitability.   

EU drives forward new AI code of practice

The EU has published its long-awaited code of practice for general-purpose AI, pressing ahead with its landmark AI regulation despite strong opposition from the US government and major tech firms, according to the Financial Times. The code clarifies how new rules, set to take effect next month, will apply to advanced AI models such as OpenAI’s GPT-4 and Google’s Gemini, including requirements for copyright safeguards, independent risk assessments, and post-deployment monitoring. The move comes amid mounting pressure from industry leaders, with 46 top executives from Europe’s largest companies signing an open letter urging a two-year “clock-stop” on the rollout of the AI Act. Meanwhile, EU tech chief Henna Virkkunen previously told POLITICO she may consider delaying implementation if key standards were not ready by August. It’s now up to tech groups to decide whether to sign the code, which still awaits formal approval from the European Commission and member states. 

OpenAI boosts defences as global AI tensions rise

OpenAI has significantly ramped up its security operations amid growing fears of corporate espionage, the Financial Times reports. The company has introduced strict internal controls, biometric access and isolated computing environments to protect its proprietary AI models. The clampdown intensified after Chinese startup DeepSeek released a rival model in January, which OpenAI claims was built using “unauthorized techniques.” US authorities have warned of increased foreign attempts to access sensitive tech against the backdrop of the broader “global AI arms race”. OpenAI’s efforts include hiring military-grade security experts and implementing “tenting” protocols to limit internal information sharing. Beyond commercial rivalry, the intensified security measures underscore a global power struggle over the future of AI. 

Top Tweets of the Week

• Linda Yaccarino, former CEO of X: “After two incredible years, I’ve decided to step down as CEO of 𝕏. When @elonmusk and I first spoke of his vision for X, I knew it would be the opportunity of a lifetime to carry out the extraordinary mission of this company. I’m immensely grateful to him for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App.”
• Department for Science, Innovation and Technology: “Households that struggle to eat nutritious food will receive support through six new projects across the UK 🍎
  Innovative tech will direct a mobile greengrocer to residents in Liverpool, helping people live healthier lives and deliver the Plan for Change.” 
• European Central Bank: “A digital euro would complement cash by offering its equivalent for digital transactions, emphasised Piero Cipollone in his speech at Banka Slovenije. It would also enhance Europe’s sovereignty, resilience and innovation potential in payments, while protecting privacy.” 

Number of the week

$4tn Nvidia becomes first company to reach $4tn in market value (Sky News)