Earnings estimates for companies around the world have fallen sharply in recent months as analysts attempt to predict the impact of new U.S. tariffs.

Earnings per share across Europe's benchmark Stoxx 600 are expected to fall 0.2% on an annualized basis in the second quarter, according to LSEG I/B/E/S research. On April 1, ahead of Trump's so-called "Liberation Day," analysts expected 7.2% growth.

Analysts are watching three key sectors as Europe's largest companies prepare to report on their earnings — read about them here.

— Matt Ward-Perkins

Andrew Bailey, governor of the Bank Of England, pauses before the start of the Monetary Policy Report press conference at the Bank Of England on Feb. 6, 2025, in London.

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In an interview with British newspaper The Times, Bank of England Governor Andrew Bailey said the central bank would deepen its rate-cutting cycle should the U.K.'s job market slow.

His comments came as the U.K.'s most recent inflation print remained elevated at 3.4%, with economists polled by Reuters expecting the June reading to be flat when it's released on Wednesday.

But Bailey told The Times there were "consistent" signs of British firms "adjusting employment," and said the U.K.'s economic struggles were creating "slack" that would help cool inflation.

"I really do believe the path is downward," he said in the interview, which was published on Sunday night. "If we saw the slack opening up much more quickly, that would lead us to a different conclusion."

Markets are currently pricing in a 25-basis-points cut at the Bank of England's next meeting in August, according to LSEG data.

— Chloe Taylor

Cargo shipping containers wait to be loaded by cranes on container ships at the Burchardkai container terminal at the harbour of Hamburg, northern Germany, on June 3, 2025.

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Following President Trump's decision to impose 30% tariffs on imports from the EU — we wanted to take a deep dive into the volumes of trade between the two.

When it comes to goods, in 2024 the EU exported around 530 billion euros' ($618 billion) worth to the U.S. and imported 335 billion — giving it a surplus of nearly 200 billion euros. But as Brussels is quick to point out: the U.S. leads the way in services where it enjoys a surplus of 150 billion dollars.

All in all, that gives the EU a total trade surplus of just $50 billion. 

And finally - what are the European industries and countries most exposed to U.S. tariffs?
By sector, it is far and away the pharmaceutical sector, followed by autos and aircraft machinery. 

Looking at individual economies, Germany and Ireland stand out as the most exposed: Almost a quarter of all German exports are destined for the U.S., while for Ireland that figure is more than a third. 

— David Martin

The Millennium Bridge in London, on July 4, 2025.

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Good morning from London, and welcome to CNBC's live blog covering all the action and business news in European financial markets on Monday.

Futures data from IG suggests regional markets will start the week flat to lower, with London's FTSE 100 expected to flat, Germany's DAX down 0.6% and France's CAC 0.5% lower. Italy's FTSE MIB is seen opening 0.7% lower.

The dour mood for European markets comes after U.S. President Donald Trump announced at the weekend that he would impose a 30% tariff on goods imported from the EU, dealing a blow to the bloc after several months of negotiations to try to reach a trade deal. The duty will go into effect on Aug.1.

The EU has said it will not retaliate straight away but would look to reach a deal.

"Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," European Commission President Ursula von der Leyen said in a statement.

She said the EU remains "ready to continue working towards an agreement by August 1."

"At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required."

— Holly Ellyatt