Europe bulletin: pound steadies, Airbus slows, Getty deal

Markets and corporate headlines delivered a mix of currency volatility, industrial strain, regulatory scrutiny and political shock on Thursday.

Sterling steadied near a one-month low as rate-cut bets firmed, and Airbus scaled back A320neo production targets amid engine shortfalls.

UK regulators raised concerns over the Getty–Shutterstock merger.

Prince Andrew was arrested in a misconduct investigation linked to newly released Epstein-related files, adding fresh uncertainty across financial and political spheres.

Sterling steadies after three-day slide

Sterling steadied on Thursday after a three-day slide, hovering around $1.3483 after touching $1.34816, its lowest in nearly a month.

The pound has been hit by softer UK data, including a rise in the jobless rate to 5.2% in Q4 and slower wage growth, while January inflation fell to its lowest since March 2025.

Markets now price roughly an 80% chance of a 25-basis-point Bank of England cut in March, with a move fully priced by April, and the currency sat near 87.39 pence per euro.

Political noise around the Epstein files and pressure on Prime Minister Keir Starmer also kept traders cautious.

Airbus cuts A320neo ramp-up target

Airbus trimmed its main production ambition for the A320neo family, saying engine shortfalls from RTX unit Pratt & Whitney have disrupted its ramp-up plans and weighed on 2026 guidance.

The planemaker now aims for a narrowbody output rate of 70–75 jets a month by the end of next year, stabilising at 75 a month beyond 2027, instead of hitting 75 sooner.

CEO Guillaume Faury said Airbus was “very dissatisfied” and has started a process to enforce its contractual rights, as the two sides still lack an agreed engine-volume deal for 2026-27.

Airbus nevertheless forecast 870 deliveries in 2026 and adjusted operating profit of about 7.5 billion euros.

UK flags Getty–Shutterstock concerns

Britain’s Competition and Markets Authority said it has provisional competition concerns about the proposed Getty Images–Shutterstock tie-up in the UK market for editorial content, even as it cleared the deal for the global stock-content segment.

Both companies said they disagree with the watchdog’s interim view and will submit responses by the March 12 deadline, while the US Justice Department continues its own review.

The merger, announced as a $3.7 billion deal, moved into a Phase 2 probe after earlier remedies failed to satisfy UK officials.

Getty rose 1.9% and Shutterstock 0.9% premarket in trading after the CMA update on Thursday.

Prince Andrew arrested

British police arrested Andrew Mountbatten-Windsor, King Charles’ younger brother, on suspicion of misconduct in public office, after officers arrived at Wood Farm on the Sandringham estate in Norfolk.

Thames Valley Police said a man in his sixties from Norfolk was held and searches were under way at addresses in Norfolk and Berkshire, but it would not name him.

The investigation follows allegations, raised after newly released US Epstein-related files, that Andrew passed confidential government documents to Jeffrey Epstein.

Andrew has denied any wrongdoing.