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US inflation swaps price in big short-term tariff impact, flag recession risk

NEW YORK (Reuters) -Investors in financial derivatives called U.S. inflation swaps are betting that President Donald Trump's tariffs will have a hefty short-term impact on consumer prices that will recede in the next few years as recession concerns escalate. Inflation swaps are used to hedge against a rise in prices. Specifically, the receiver agrees to exchange with the payer a fixed amount for floating payments tied to the Consumer Price Index (CPI) for a given notional amount and period of time.

Continental says North America light vehicle output down over 'economic uncertainty'

BERLIN (Reuters) -Continental AG expects production of light vehicles in North America to fall by around 7% in the first quarter, the German auto supplier said on Tuesday, citing "economic uncertainty" ahead of looming tariffs on the sector. "The current tariff situation and the development of new product launches are creating high levels of uncertainty, impacting strategic planning and market predictions," Continental said. The comments come ahead of earlier announced U.S. import tariffs on cars that come into force on April 3, with broader duties expected to be announced by U.S. President Donald Trump on Wednesday.

US job openings decline in February amid rising economic uncertainty

U.S. job openings fell in February as rising uncertainty over the economy due to tariffs on imports curbed demand for labor. Job openings, a measure of labor demand, dropped 194,000 to 7.568 million by the last day of February, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday. President Donald Trump has made a raft of tariff announcements since returning to the White House on January 20, including hefty duties on imports of steel and aluminum and a 25% levy on imported cars and light trucks.