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French Socialists Keep Their Word And Japanese Automakers Shift Into Higher Gear By Charles Payne

Question of the Day

Given the latest jobs data, do you think tomorrow's unemployment rate and nonfarm numbers will beat expectations?

Click here to post your answer and let Charles know what you think.He will air some on the Payne Nation radio show.

I'm hosting Varney & Co on Fox Business 9:20 EST- Please tune in!

"Cutting spending is like slowing down a supertanker- it takes time" -Jerome Cahuzac
Budget Minister, France

As Americans celebrated the birth of the greatest nation in the world, France moved further away from its great days with a bunch of new taxes on the rich, large banks, and energy companies. The taxes will rake in €7.2 billion with €2.3 billion in one-off levies on the wealthy (€1.3 billion net worth) and €1.3 billion on certain corporations. Still, France has a massive debt problem, chronic unemployment, and little prospects of growing its economy anytime soon. The fact is that France put its economy in neutral a long time ago, content with mediocrity and living off its past glory and constant arrogance.

There is very little home-grown wealth, and now the government will milk dry the remaining fortunes as if it were part of a public domain.

At least these latest tax hikes were focused on people with net worth of €1.3 million, in America the onslaught of new taxes hits household earning $250,000 annually. France says it will freeze €1.5 billion in spending, but admits it must do much more. I guess it's easier, and it's like riding a speed boat to confiscate the wealth of others, rather than slowing that supertanker of spending and destructive taxes. Goaded on by the President of United States, and misunderstanding on how wealth is created, this could be America's future.

Auto Sales

June auto sales came in better than anticipated and gave hope that this year's sales will be the best since 2007. Two things that stood out the most were how light trucks continued to make the difference and that GM and Ford continued to lose market share. Interestingly, as Toyota and Honda scooped up market share, both also raised their prices.

Today's Session

Tuesday's session was fantastic even if it was half a day and had light volume. There has been a shift in pent up anxiety from worrying about the next leg lower to concern about missing a tradable bounce. So much depends on money-printing on both sides of the Atlantic and seeing some signs of life, especially now that the Supreme Court has given the okay to creating the biggest supertanker in history.

Speaking of printing money, for the first time since 2008, China cut its rates for one-year loans and deposits. It's a gambit that could hurt banks but encourage more competition and might get money off the sidelines and into the domestic mix. Interestingly the ECB rates cut didn't move the needle for the market as it was highly anticipated.

ADP Says Jobs!!!

The ADP report out this morning points to significantly more jobs than expected from tomorrow's jobs report. The 176,000 is well above the 95,000 expected. Of course we need 350,000 a month to whittle away at all the jobs lost since the great recession began. Be that as it may, look for official estimates on tomorrow's number to shift higher and bring the general consensus above 100,000. I'm not sure if this changes what the Fed might be planning as it still is a terrible number. Moreover, can the street find a way to celebrate mediocrity at this stage of the recovery?

This makes the next 24-hours even more of a nail-biter.