hospital because of that impact. jon: if you can't stand the heat, get out of the kitchen. that is what one person dead and annapolis. he actually could fry an egg on the sidewalk. jenna: i'm hungry. are you ready for lunch? jon: yes indian. megyn: we begin with fox news alert with a serious subject. the economy is still struggling. welcome to "america live", i am shannon bream information kelly. it is the third straight month of weak job growth and we are getting down to the wire. there are five monthly jobs report left before the november election. for more chances for president obama to prove the economy is rebounding. take a look at these numbers. 80,000 jobs added in june, 10,000 less than expected.

not nearly enough to put a dent in the unemployment rate. but the president and governor mitt romney react to the disappointing jobs numbers. >> we learned this morning that our businesses created 84,000 jobs new month. that means we created a 4.4 million new jobs over the past 20 months, including 500,000 new manufacturing jobs. that is a step in the right direction. >> not only is the 8.2% number unacceptably high, and one that has been in place for over 41 months, but in addition if you look at the broader analysis that people who are out of work or dropped out of the workforce or that are underemployed, part-time jobs needing full-time work, it is almost 15% of the american public. >> chris stirewalt is our host on fox news. you put that number at 14.9%, what does it mean?

reporter: when you factor in the folks that have given up looking for work, the folks working part-time jobs when they want to be working full-time jobs, it is the more accurate picture of what is going on. when you have a stagnant economy, the 8.2% topline number is not that indicative. itoes not tell you about the size of the workforce, how many people are looking for work and how many people are giving up. that is what we are looking at as to how people are feeling us. what is the misery index. about whether to continue with president obama in the white house. shannon: president obama talks about the dismal situation he inherited. he says for 28 straight months the private sector has added jobs at a rate of 4.4 million. is that going to be a strong selling point for him? >> you can slice that the other direction, too. you can say any months that you don't have 125,000 new jobs coming you are losing ground. you have new people young people

entering the workforce. you are adding, but not enough to keep up with what you need for population growth. that is where the president has been for the last several months. good news in the wintertime, things aren't that bad, then we got will be having two consecutive years, as he did into the second quarter, it starts in the president finds himself here now. shannon: a june poll showed that 55% disapprove of how the president is handling the economy. when we go out and take these polls about what the most important things are in the election, people say it is the economy. will that carry over to the ballot box? people have to make a decision about who they want to leave the country. >> we can make it very simple. if the economy does not hold of this anemic level, the president's chances are very slim. he is hoping that what he can show is that no, we are not gaining but we are holding. and republicans were such a

disaster before and it hurt the country so much, it is all i can do to bail out of this. this is going to be a tough sell for him and a complicated pitch because people are frustrated. if he can couple that with his vicious attack on mitt romney's character, saying that he is a bad person and a vampire, in fact, for what he did in the private sector, maybe he can pull off a narrow victory. shannon: chris stirewalt, thank you so much. construction industry can be an indicator of where the economy is going forward. the unemployment rate is not 8.2%, it is far higher. mike emanuel is on that story and has details live from washington. reporter: experts say construction employment is stagnant. while the unemployment rate is climbing in the right direction, experts say there are other reasons the numbers are improving. in march, construction sector unemployment was 17.2% according to the bureau of labor

statistics. in april, it was at 14.5 end in june it was 12.8. our experts say the construction workers are finding work in other fields. the general contractors of america breakdown like this actor has been struggling. >> construction really depends on overall demand. we need to see continued growth in the rest of the economy, a stronger rate for office construction and retail construction. the public sector has formally been a big source of construction activity and that has been declining for over a year now. that is going to continue to be a problem area. reporter: as for the public sector, there was a big push by congress to get the transportation bill done before the fourth of july recess grid experts say will not increase construction jobs, but we'll make sure that firms don't lay off workers.

president obama gave us this preview by suggesting we start using money we have been spending on the war in a new way. >> let's take the other half and do some nationbuilding here at home. let's put some folks back to work. rebuilding our roads and streets. that is what i want to do as a second term president in the united states. reporter: the president is due to sign the transportation bill at 4:55 this afternoon. shannon: mike emanuel, thank you so much. the latest employment report, president obama has entered risky territory. the average job growth for the first six months in an election year is thought to be critical to a president reelection chances. over the past few decades, presidents who oversaw weak job growth going into november, they did not do so well. these numbers reflect the average job growth in the first month of the election year in 1980, president carter was

wreaking reelection. it was minus 96,000 jobs. in 1984, 375,000 jobs were created in the first six months. reagan won his reelection. in 1992, that number was a dismal 63,000 jobs. president each of you bush lost. in 1996, 240,000 jobs were created in the first six months and bill clinton won. in 2004 was 197,000 jobs, president george w. bush won. in 2012, average job growth in the first six months is 150,000, and that puts president obama right in the middle of this. an update on the mystery surrounding illinois commerce man jesse jackson junior and his leave of absence. the congressman's office said his illness were more serious than previously thought and he needs extended inpatient treatment. he faced some questions after he was absent from the house floor

for two weeks last month. no details are being provided on the exact condition or where he is seeking treatment. new developments on the trayvon martin case. lawyers for george zimmerman are appealing to his supporters. this comes hours after the judge set his bond at a million dollars. the bond was initially set at $150,000. the judge revoked that after william zimmerman and his wife attempted to deceive the court about their finances, specifically money raised from online supporters. new developments in the story of a fourth of july celebration that ended in tragedy. police identified three children killed on a vote that capsized off of long island. twenty-four people were tossed into the water, but they were rescued. 8-year-old and an 11-year-old may have drowned when they became trapped inside the bowl. the picture of the third child has not been released. investigators say there may have been too many people on that vote when it turned over and they are not ruling out criminal

charges. reporter: that vote is still 60 feet underwater. they are in the process of raising that as early as today and they are also talking with all of the passengers, the survivors who were on that vote to find out what happened. there are still a number of factors at play here. it looks like this might have been a series of events. you mentioned the number of passengers. twenty-seven people on board a 34-foot vote. that is a lot. even if a lot of those passengers were children, we went back and looked at 34 for both, and i cannot find a capacity higher than 16 people. keep in mind, watching fireworks and an estimated 1000 votes on the long island sound, a lot of those bull's high tailed it back to the shore. if they were loaded down and somehow off-balance come you have experts to tell you that boat becomes very unstable. here is a man that is an

experience boater. >> it was a perfectly calm day. they passed me on the right and almost flipped me over. there's nothing that you can do when that happens. you can't turn into it or away from it, they will swamp stop you. you just have to ride it out. if you are lucky. reporter: that is an example of how much the boat weight can pose a problem for a lot of people on board. you talk about identifying the children. one of the three children who were killed in that accident was also a nephew or the nephew of the skipper of that yacht. just a horrible tragedy. once they raise that boat company might have more answers. shannon: thank you for the update. a new report saying the white house wants to send tens of millions of dollars on a new

green energy product. several green energy companies have gone bust in the united states. is that the best way to spend taxpayer dollars? we will have a fair and balanced debate. also, arizona's anti-immigration law. california is is responding with a build their own that critics are calling a potential disaster. i will tell you all about it. thousands across the country may lose their internet service on monday. i will tell you why and what you need to do to keep yourself online. i'm a marathon runner, in absolute perfect physical condition and i had a heart attack right out of the clear blue... he was just... "get me an aspirin"... yeah... i knew that i was doing the right thing, when i gave him the bayer. i'm on an aspirin regimen... and i take bayer chewables. [ male announcer ] aspirin is not appropriate for everyone so be sure to talk to your doctor before you begin an aspirin regimen. so he's a success story... [ laughs ]

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shannon: it may not be in hollywood, but there are no mermaids in real life. it turns out a lot of people out there confused the broadcast on animal planet called mermaids with an actual documentary. in reality it is just fiction. very important questions about president obama's energy policy. another company, nevada geothermal power, received a 98 million-dollar loan guarantee from the government and the washington times says the obama administration is spending $20 million on a green energy plan for africa. is that really the best use of your taxpayers dollars? let's bring in mark hanna and

deedee binky. >> it is one of obama's excellent adventures. this is where we are yet again. we are wasting all this money. we should be focusing on the oil that we can drill offshore in louisiana and also our natural gas and coal. we've got a source for our own energy. why are we wasting our taxpayer dollars? shannon: they said it is all about wind and solar and trying to help the people of africa. >> it is humanitarian grid we are at an eight year high for oil and gas drilling and production in the united states. we are at a 16 year low for our dependence on foreign sources of oil. the government and the president support oil and gas. but yes, they absolutely support wind and solar and geothermal

clean sources of energy. it will be the next generation. if you look at this historically, the coal industry would not exist if it were not for the government support in the 1800s. the nuclear industry was buoyed by government loans that happened after world war ii. let's not mention the $2.5 billion in taxes and subsidies that were given to oil and gas companies this year. [talking over each other] [talking over each other] >> from his stewardship perspective, the government should be reporting clean sources of oil. excuse me, clean sources of energy -- shannon: if you can come up with that -- >> if you could come up with queens -- shannon: how about the usa first. we should be wasting our foreign money on this method is about energy security at the same time. shannon: we should not put the

research and clinical industry. we have tons of coal and natural gas and we do not need to be dealing with anything in africa. actually come to businesses for natural gas, oil and all of our domestic production, we can slide off with the middle east. shannon: mark brings up the humanitarian part of this picture. can we have a duty to help other countries in this way? >> we have done a lot in africa, we are a humanitarian nation, but we are broke. let's put the resources in our country and in the united states first. shannon: can we afford this? when you're talking about trillions of dollars in debt, his attorneys elsewhere in taxpayer money when we do have trouble? >> it is important to put it into perspective. $2.5 billion in taxpayer subsidies and subsidies for oil and gas companies. that is money that middle-class americans could be having.

>> what about solynda? >> they really get rid of funding of all energy, that would be the purest purist argument from the right. frankly wouldn't be necessarily right. government is going to be, especially -- and to say that look, we need to take care of our own first. that is extremely naïve. giving oil and gas to people in new england, i grew up in massachusetts. we had joe kennedy of their -- >> we've seen the commercials. shannon: deedee, when you make of that? >> i think that obama's excellent investors need to stop. we need to drill in alaska, louisiana, we need to get coal and natural gas -- >> a lot of the people in the middle east are extremely rich right now. >> know americans no americans want to put more money in the pockets of them, but peoples whose ideology we don't agree with -- certain countries that are out there that we delay.

transporter, you mentioned that there are great environmental concerns and how we find a balance their? >> i think we need to just go forward. it is going to have to be the case. we just have to move forward with energy. shannon: mark, can you handle this? [talking over each other] [talking over each other] [talking over each other] >> she has newt gingrich on the mind, maybe. [laughter] >> look, there is an environmental argument to be made. we want to leave this country better off for our kids and grandkids. that's a moral opposition. but there is a national security argument any economic argument to be made. the energy situation in the country is a crisis and barack obama is doing everything he can. the renewable energy sector is responsible for nearly a quarter of a million jobs. [talking over each other] [talking over each other] shannon: how does this money in

africa help us? >> it doesn't help us with jobs here, but in the long-term security of our country, we know it's like to have less than stable regions in the world developing dirty, expensive sources of energy. >> with our economy -- [talking over each other] [talking over each other] shannon: mark and deedee, thank you both for coming in. big union dues paying for something trips for the union's top brass. taking a look at the luxury outing, so is the irs. tom cruise is not talking about his split from katie holmes. his lawyer is. we will tell you what he's saying about the high profile divorce. and will the health care law help or hurt the economy? we will have some surprising numbers next. >> i will work with anybody who wants to work with me that will will continue to improve our health care system and health care law. est the live past is here tostrt

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shannon: well, it has been weak for the tom cruise and katie holmes split. cruz's attorney explaining his side. the soon-to-be ex telling the bbc that we are letting the other side, katie holmes and her team, play the media until they where everyone out and then we will have something to say. there have been nine reports saying that he was behind a divorce. they said that katie holmes gladly participated in the religion. this new report says that katie holmes controlled his life like a puppet master, and in the end katie holmes felt like she could not breathe without his

permission. big leverage unions are collecting big bucks from their members. millions of tax-free dollars are going to luxury results, golf courses and casinos and now the irs is taking a closer look. liz macdonald is live in hollywood florida to tell us more. >> hello, shannon. we are standing in front of the westin diplomat. this is the hotel that some might envy her at a labor union owns this and also another golf resort out in st. paul, minnesota, area. the uaw owns a lakeside resort in michigan. in a time when all sorts of labor worker unions employees have been losing employment, some have been enjoying junkets outnumbers expenses. they are using taxpayer member dues to buy conference trips to places like the flamenco or the golden nugget hotels in las vegas. they are also basically spending a lot of money on hundreds of millions of dollars to go to not

just buying these resorts, but also on junkets for teachers in upstate new york. they are also going to casinos, the tropicana in atlantic city detroit, and the issue is ducasse and teachers and other labor union members know how they're taxpayer money is being used? shannon: do we know what the irs is saying all about this so far? >> well, the irs is telling fox business that it is looking at all nonprofits. what happened was the irs behind the scene did an overhaul of their tax returns and nonprofits in 2008. i don't think many people knew about that. what happened was because the unions were nonprofit, they had to file their taxes on those nonprofit returns. now, by the way, nonprofits do have to pay taxes on their for-profit activities. but the question is, are they paying the right amount?

i have to tell you something, shannon, coming into a hotel like this come you have to wonder, do all teachers and transit workers, debate even get invited to these hotels events? back to you. shannon: interesting question. liz macdonald in hollywood, florida. republicans feeling the heat after pledging to repeal president obama's health care law. critics are asking how will the gop pay for its own health care plan? we will take a closer look at that next. plus, police already have a lot to do when they are doing their jobs and now they have something new to worry about, thanks to the aclu. this threat is thread is not always visible. a live report with details still ahead.

shannon: new pressure on republicans who are vowing to repeal the president's health care law. if they do get that law repealed, they must detail their own plan. financing has been a controversy while the individual mandate has drawn strong criticism. how do republicans plan to help the uninsured with their plan? do they have one? jim ringel is live. reporter: republicans are

thomasson to replace obamacare. they are promising to help the uninsured by insurance in a competitive market. there is one big difference with the president's plan. he decided to use a mandate to force people to buy insurance. republicans have a different approach. >> many on the other side say that there is an alternative if we actually use carrots and provide the right incentives for people to want to buy health insurance and give them more choices for the health health care coverage that they think is valuable to them. reporter: republican lawmakers argue you can't have millions of uninsured in the country without creating chaos of the health care system. some analysts propose tax credits to help people by insurance them and i think we ought to have about $2300 for an adult, about the family of four could get $8000 and i would buy the corn churns that we want everyone to have. >> it gets us closer to universal coverage than

obamacare does. this allows the 50 million individuals that are currently uninsured to be able to actually have the money to go out and purchase in a competitive market their own insurance. reporter: helping people who want insurance they can't afford it. conservatives could take the 3 billion and simply given out in refundable tax credits, meaning people get to designate the money even if they don't pay that much in taxes. money to purchase insurance and under republican proposals, some companies all over the country competing for their business. >> hundreds of billions of dollars without putting the federal government in charge of. reporter: republicans argue they can help the underinsured or uninsured by insurance without restructuring health care system or raising taxes. shannon: thank you so much. a new gallup poll showing most americans feel the president's health care law will be more harmful than good.

it appears to be the crucial independent voting bloc that is tipping the scale. joining us now for a fair and balanced debate is alan combs. welcome to both. >> let's start with that important number that looks at independence. 34% say it will help, 47% say it will hurt. alan cumming is that because they don't understand the law and its impact? >> i don't think they do. i think democrats have done a much better job explaining how this law works. among independents, 34%, you know, plus 19% who don't even have an opinion about it, that makes the majority 53%. if you actually add those who had no opinion with those who have a positive view of it, that is actually a majority, and in fact there are tax credits, families usa estimated 20.6 million americans will get

tax credits and 2014. it actually saves money and create jobs. this is a line of thinking that is not been properly presented to people who understand what is going on here. shannon: i am not a math major, so i will accept your explanation there. [laughter] shannon: the truth is in menstruation has explained many times that a number of top democrats are frustrated because they feel like people don't understand the law. and also what is great about it for them. last week on the supreme court upheld the mandate and the democrat said this is our chance to resell it to the american people. will they be able to do it? >> no. they have been trying to sell it for two years ever since it was passed at nancy pelosi's insistence, now we know what is in it. the largest single tax increase in human history. >> not true, not true. >> i know your new book explains how liberal have saved america -- [talking over each other] [talking over each other]

>> the fact is this is a gigantic government mandate. the people that are looking at this and saying in the polls that we don't like this, it's going to hurt us, they understand that government had all the answers, well, the president we be key economic performance would not result in a% unemployment. [talking over each other] >> watching someone from the heritage foundation put down the mandate, mitt romney went to the heritage foundation and did a powerpoint presentation -- [talking over each other] [talking over each other] shannon: just to be fair, i have asked him about that because that is a line that i hear quite a bit. twenty years ago it was a different kind of mandate and it's not what would end up in this kind of law. they have backed off that position. to be fair to them, to share what they are currently saying about that. first of all, i think it's awesome that you have a book -- [talking over each other] >> mitt romney went to the heritage foundation and did a powerpoint presentation promoting the individual mandate

because what he was doing in massachusetts -- [talking over each other] [talking over each other] [talking over each other] >> should be a national model -- [talking over each other] >> romney is wrong and wrong nature was wrong. obamacare is wrong and the american public is of the opinion that it is wrong. amerans don't want to. >> tell me what the republicans have to replace it with. >> i will do it quickly. >> mitt romney and the republican leadership hasn't said anything. >> yes, he has. [talking over each other] >> no, i don't want to. i like being behind the microphone at in the private sector. the government is not based on success for the private sector is. the fact is if you got rid of government mandates, if you allow people to buy the insurance they want, if you allow them to buy across state lines and shut down the democrat supporting trial lawyers committee made those changes come insurance would come down to choice.

choice is not just about killing unborn babies. shannon: we don't want to digress on something like that. [talking over each other] [talking over each other] [talking over each other] shannon: let's keep this on health care. some of those points that were made, they can actually chip away at the bottom line of health care costs. do you think there would be any bipartisan agreement on tackling any of those? >> is a matter of fact, you could ask about those things that have been done. things that are very popular. when you talk about piece by piece, you know, no punishment for pre-existing conditions and caps on lifetime coverage. you can have affordability with your job, those are very important things. the republicans want to do away with all of that. what do they want to replace it with? [talking over each other] [talking over each other] >> quick final word, obamacare is a train wreck. they have had to pitch varies pieces over the edge. it is a chilly in to $1.7 trillion, americans know it's a dumb idea. [talking over each other]

shannon: all right, we have to leave it there. best wishes with the both of you. great to see both. the new effort to protect illegal immigrants in the wake of the supreme court's ruling that upheld the most controversial aspect of arizona's immigration law. we will tell you that the bill in the works in california. they dubbed it the anti-arizona. critics are calling it a potential disaster. we will have a debate. and brad pitt's mom. key issues in a very public letter. all the details next. the state department investigating a secret shipment of computers and high-tech equipment to iran and north korea. new allegations about how the rogue nations are getting that equipment.

shannon: the mother of one of hollywood's biggest celebrities is throwing her support to mitt romney. brad pitt's mother wrote a letter in the springfield missouri news leader saying i think any christian should spend much time in prayer before refusing to vote for a family man with high morals, business experience, who is against abortion and chairs christian convictions concerning homosexuality just because he is a mormon. while brad pitt has yet to comment, the actor has been very vocal about his support. the red-hot debate over illegal immigration now spreading from arizona to california. the senate passed a measure that could create a century state or illegal immigrants by protecting many of them from deportation. the exception are those who have serious felony convictions. if the bill passes the assembly, it could prevent the police from enforcing immigration laws. we have francisco fernandez and dan stein.

lothar immigration attorneys. welcome to you both, gentlemen. >> thank you. >> great to be here be one this is the policy we are hearing from the doj and dhs and i.c.e. why should california codify it? >> if the national train is jumping the tracks, california is plunging down a ravine. they are actually doing even worse than the obama administration in terms of enforcing the law by running a program contrary to what the secure communities would dictate under the obama administration and the scanty enforcement policy. they are saying what the supreme court last week said they couldn't do. which is to run a state program contrary to the national and federal priorities. this program run out of i.c.e., the immigration and customs enforcement, says that pleasers was rechecking fingerprints with i.c.e., and that i.c.e. aspirate

detainer. calipari says will let people go unless they committed a serious felony. we won't verify fingerprints. criminal offenders, people who have ids and need to be checked, they are not going to be identified. criminals are can walk free because california police are going to be checking people unless in a particular transaction, that alien has committed a dangerous felony. that is not a federal priority and certainly not the national immigration law. shannon: let me ask you, there are a number in california did say that they oppose this idea. how do you respond? two listen, the problem is that folks, and mr. stein is usually pretty reasonable in his arguments, how can you say that arizona has the right to pass their law in california shouldn't pass their loss if they want to pass? we agree to these laws started popping up because the federal government refuses to act. it is wrong for arizona to do it come in california should not do either. california is eventually going to have to face it.

shannon: arizona's argument has been that their law would either parallel or support federal law. something but california is proposing is something that would be in opposition to federal law. is there a distinction between what is two states are trying to do? >> is the arizona law is parallel to federal law, why do you need it? the only reason it was passed was so political patriots -- political pandering was going on come the same thing with california. i just think it parallels the obama administration that we are going to devote our priority to immigrants who have felonies. it is a matter of priority. i do agree that arizona should not do it come in, then california probably should not be doing it either. for different reasons. the fact of the matter is the federal government is going to have to act. they refuse to act at the congressional level. shannon: dam, francisco said that you are generally very reasonable. starting from that premise, what

is objectionable here? california says, as arizona says, we want to pass our own straight loss dealing with immigration. two wrongs if you want to argue it that way, they make the right. >> what is objectionable here is that california is taking into itself the right to decide which criminal aliens will fall within the net and framework of i.c.e. and federal government enforcement. the supreme court said anything -- if they said anything right last week, it was that the federal government and the executive branch have some say in important priorities. no state should have the right to shield or obstruct or prevent effective federal immigration law enforcement and criminal alien removal, frankly, people in california are at great risk. they are in jeopardy of criminal aliens being leadfree by local and state police because of an unconstitutional state obstruction policy. under the obama administration, what we are seeing is a wholesale crumbling of u.s. immigration enforcement in the united states today.

this example of why california is a further example of how frankly the democratic party is intending to dismantle federal law -- you know, to the point where it has no legitimacy. these are that we are a nation of laws or we are not two the republicans are just as much to blame as the democrats. but frankly, the federal government doesn't need to state cooperation or blocking of the federal immigration law. immigration could go to any jail in any prison and take anybody that is your undocumented, just because they want to. the states can't say a word about it. it is called federal preemption. the federal powers. they can go to california to these jails and they don't -- whether california reports them or not -- immigration can run their own check. they all go through the same debate -- the same database. the bottom line, the federal government has to act and pass immigration laws to make sense.

[talking over each other] [talking over each other] >> neither one of them have offered anything to . [talking over each other] [talking over each other] shannon: we have to leave it there. we will certainly see if washington has the ability under any leadership to get this reform done. thank you both so much. >> thank you. >> thank you. shannon: employers adding just 80,000 new jobs last month. what is it about the direction the country is going and when can we see some job growth? be fair and balanced debate on that. and a way for smartphone users to record police stops without the officers knowing -- there is an application for that. but is it legal? a live report is coming out. are you receiving a payout from a legal settlement

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shannon: the aclu finding a new way to monitor the police and stirring up controversy. the new jersey branch unveiling a smartphone application that will allow people to record video and audio of police dogs even if the screen goes black, it seems like it's off. trace gallagher is live with the details. >> weather tricky. this thing is called [inaudible] the idea is that anytime you get pulled over by a copper you are confronted by a cop, you can plug your phone and tap on the application and there are two different, you know, ways to do it. you can do with audio and stick it in your pocket and it records a conversation, or you can record video that you see at the bottom of your screen, and that discrete thing makes the screen go black so the cop can't know

that you are videotaping them. if you're pointing your phone at a cop, i'm guessing he will think something will be up. after you are done videotaping or audio taping the cop you can push the button and send the thing directly to the aclu of new jersey and they will either store it for you where they will scan it to see if you are having civil liberties are violated in any capacity. one department said, and i'm quoting here, they are basically told to conduct yourself as if you are always being reported recorded. that is the safest way. other departments are worried about the safety of this. one department saying that i also hope that if a police officer is attempting to stop an individual, that person is not suddenly trying to pull a phone from his pocket in an attempt to film a police encounter. the idea of there being that if the cop says stop and you reach in your pocket and pull something out, it might get

ugly. 10,000 of these things have been downloaded safari new jersey and the aclu says the federal courts have generally upheld peoples rights to audio tape or video tape the confrontation with the police officer. an encounter is a better word. shannon: i'm going to stand by and await the arrival of this case at the supreme court. i think it may wind up there. very interesting. new terror arrests in london. the second taken in recent days coming just weeks before the olympics. what is behind the potential threats and what is britain doing to ramp up security? plus a looming danger to your ability to access the internet. why thousands face the threat of being kicked off line on monday. new developments in the scott peterson case. he is appealing a death sentence he got for killing his wife and their unborn son. who he says is to blame for their conviction. a live report on that coming up next. >> how do you remember your wife and son?

>> that is very personal. at times it is difficult to go on. but thanks very much. >> where you going to enact. a party?

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shannon: this is a fox news alert. a new round of terror arrests in london weeks before the olympic games. it's a brand-new hour of "america live." i'm shannon bream in for megyn kelly. olympic security in overdrive. investigators discovering weapons inside a vehicle in northern england. just yesterday six others picked up in separate raids. one at a home just a mile from olympic park. greggal is live in london.

>> reporter: security is on high alert. police say the arrests were made over three days. that follows a discovery of what is being called a big cache' of weapons. they say a plot sea spears to have been broken -- a plot appears to have been broken up. police are making clear today's plot had nothing to do with a plot against the olympic games. but analysts say authorities are working hard to clear up any suspicious lead they might have relating to any terror activity in this country. they are certainly not taking any chances specifically with the game. the price tag on the security efforts, $875 million. this is for games that will only last just about two weeks or so,

along with tens of thousands of soldiers, police and security guards in attendance. the stakes are very high. london is no stranger to masterror. tomorrow the 7th anniversary of the suicide bomb attacks in a london transport system. they want to make sure that doesn't happen again in the coming weeks. shannon: a bumpy ride for the president's campaign bus. critical battleground states hit hard by the struggling economy. the labor department reported unemployment was unchanged in june with just 80,000 new jobs added. the u.s. gains 275,000 jobs in january this year. but a month later we were down to 259 thundershowers. march 243,000 and april a new low to 68,000.

we have been clawing our way back ever since with may up 77 ,000 to today's report. the president will be speaking at a campaign event in just a bit. as the president and his campaign team try to convince voters his opponent is the job destroyer, many wonder how he will do that in the face of these numbers. >> reporter: this report was a monthly disappoint and it's consistent with what it has been. not enough to lower the job rate at all. >> we can't be satisfied because our goal was never to just keep on working to get back to where we were back in 2007. i want to get back to a time when middle class families and those working to get into the middle class had some basic

security. that's our goal. so we have got to grow the economy even faster. >> reporter: the president is wrapping up a two-day bus tour, stopping in places like this diner in akron where he hopes for better job creation numbers. both ohio and pennsylvania have done better than the national average in terms of climbing out of the recession. both are battleground states in which polls suggest mr. obama is leading. but with the election widely expected to tush on the economy, job creation. romney called the report another kick in the gut. we looked at almost four years of policies that have not gotten america working again. we have seen his tax policies have not encouraged investment in america.

>> reporter: job reports did allow the romney campaign to switch the subject on whether the massachusetts healthcare plan used a penalty or tax break. the supreme court ruled the penalty amounts to a tax which romney says means president obama broke his promise to raise taxes on the middle class. the president says it punishes free loaders and he makes no apology for it. shannon: the number of women unemployed in june 2012 was 5 587,000. that's more than in divine -- more than in 2009 when the president took office. later this hour our expert panel breaks down what the numbers say

about america's economic situation as a whole, where we could be headed next and when if ever we could expect to see signs of improvement. it could be a big worry for a lot of americans come monday morning as thousands of people are in danger of losing their internet service. tre gallagher is live in the west coast news bureau with details. >> reporter: despite the fact that these internet providers have been all over these sites. we are told there are tens of thousands of people who as of monday could lose their internet service include something fortune 500 companies. a year ago some international hackers ran an online scam to take control of computers. when the fbi took down the hackers, they realized if they turned off all the malicious servers, the victims would immediately lose their connections. so if the fbi set up a safety

net server. so that server expires monday. so you have got to go to dcwj.com. it's on foxnews.com. there it is. dnsok.us. they will give an idea how to make sure your computer is clean. as of monday if you lose your internet connection you will are to go to your service provider and it will be a major hassle. go on to dna-ok.u surks. shannon: have you checked yours? >> reporter: i have checked mine and i'm clean. shannon: thanks very much for

the info on the screen and as you said on foxnews.com. scott peterson filing an appeal to the california supreme court 8 years after he was sentenced to death for the murder wife and unborn son. why he's arguing he should be set free. we'll tell you why jury selection is becoming a major concern. a state department is investigating certain shipments to iran and north korea from a u.n. agency. >> it's an outrage that wipo would be transferring material, violating the sanctions that we have to north korea and iran. this stuff -- it's funded by u.s. inventors. ♪

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shannon: jury selection was the focus of a pretrial hearing for the army psychiatrist accused in the deadly fort hood shooting rampage. hassan's court-martial is set to start next month. new questions following an investigation by the state department of a united nations agency. officials reportedly looking into shipments of computers and other equipment to iran and north korea by waive an to be secure u.n. agency, despite sanctions against both nations. k.t., great to see you today. >> hi. you can't make this stuff up. the united nations is suppose to be the organization that looks over these things.

we don't sell high technology equipment directly from the united states to these countries on the sanction list, the united nations is not supposed to. they are not only selling, they are probably giving this stuff to iran and north korea. shannon: from what i understand about this agency that has been allegedly funneling the equipment. the u.s. has membership in this particular agency. did we not know what was going on? how did this happen? >> there is some 20 computers mat thread their way to iran. what the united nations does is it has -- many organizations, there is united nations development program, this is the united nations intellectual property organization. and they will work with member countries. and their job is to help these countries develop their internal domestic economies and et cetera, et cetera. so they have taken u.s.

computers, high technology computers, sensitive computers and they have given them to this country. it goes against u.s. law and it goes against hewlett-packard's internal regulations and it goes against united nations sanctions. are they incompetent or criminal? we don't know. this may and conspiracy. but it may be complete incompetence. shannon: it sounds like from what i know so far the head of this particular u.n. agency is not cooperating with the state department's attempt to look into this. does that suggest anything to you or they don't want the u.s. state department getting involved telling them what they can and can't do. >> you don't know and it would be irresponsible for us to assume there is an oil for food scandal involved here. it does stretch the imagination to think that the united nations can't keep track of 20 computers. this is the same united nations

which earlier this week was considering an international ban on gun sales. a treaty they want the yiets to to -- wants the united states to go along with to keep track on millions of weapons to make sure they don't go to bad guys, sub national groups and rogue nations. if they can't keep track of 20 computers, i don't see how they will keep track of millions of small arms. shannon: let many talk about the other news out of iran. the testing of missiles and military exercises and the growing threats to israel and others in that region. but to sort of telegraphing that they would go after a couple dozen u.s. bases in that region should they be attacked by israel. how likely do you think that would be? >> let's just see what happened in the last week. they tested the shahab missile.

it could carry weapons if iran had them. it can also carry conventional weapons. it can reach 1,200 miles. it has the ability to be fired from iran and reach any u.s. bases in the region and it can also reach israel. so iran has said don't mess with me because if you do, israel, or the united states, we are going to retaliate and take out your assets. do we take it seriously? yes. iran has tested that it can shoot off these weapons. if there is an iran-u.s. war who wins? the united states is predominantly the military power. but essentially it's iran trying to beat its chest and brag and say for several reasons, don't mess with us or we'll retaliate. they are saying to the oil markets, you know, if there is something that happens we could retaliate, the price of oil will

go up. we have seen this week after iran made the statement the price of oil went up. the third thing is they are talking to their own people. they are saying sanctions are about ready to be brought down upon you. they will make things much more difficult. prices of food will go up and prices of consumer goods will go up, but we have it covered, we can deal with the united states any time we want. i think what the iranians worry about more than anything is their own people rising up against them like an arab spring. shannon: you mentioned u.s. base in turkey and kuwait. they would be firing on those countries. do they want to stir that up? >> no, of course not. nobody wants a war in the middle east or a war with iran. iran's threat to retaliate against u.s. assets in these regions. the knew nateed arab emirates. we have a base there.

are they going to attack a nato base in turkey? are they going to attack bahrain? they are not about to do that. they don't want to start a third world war. they don't want those other countries coming off iran either. i think a lot of this is bragging. it's boasting, it's threatening which the iranians do. every time they feel cornered, and they have done this for the last 30 years. every time they feel cornered they come out aggressively. this is a country which said they have a cure for aids. do we believe that either? i don't think so. shannon: they are highly unpredictable. we know that much. kt, thanks for lending us your expertise. scott peterson on death row for murdering his wife and unborn child. why his lawyers are saying he didn't get a fair trial. the fireworks sizzle in

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shannon: we now know what happened to the fireworks show over san diego. the show was supposed to last 20 minutes. about it was all over in a flash because all the fireworks went off at one time, disappointing hundreds of thousands of people. the folks responsible for setting up the display are blaming a computer glitch possibly from a virus or malware. they are offering to do next year's show for free. very classy.

scott peterson sentenced to death for killing his wife and unborn son now appealing his conviction eight years later. his attorney filing a document with the california supreme court. he claims he never got a fair trial because of all the media hype surrounding it. >> reporter: like all death row inmates scott peterson gets an automatic appeal. he claims overwhelming publicity deprived him of justice. the marina where the body was found, it became some of the prosecution's strongest evidence in the case. but the defense wanted it kept out arguing that particular dog had a dismal track record. >> both sides argued, the prosecution saying they felt there was scientific evidence it should be admissible, the

defense argued otherwise. ultimately the judge allowed it to go to the jury saying the jury can make the determination as to the relevance and credibility of that evidence. >> reporter: now 39 years old, you can see he is clean shaven and thinner than he used to be. he leads a solitary life on san quentin's death row. he doesn't take any class. has never held a job. aside from the five hours outdoors he is confined to his cell where he eats his meals. he still gets some fan mail, but not as much as he used to. we are told he's well behaved. gets along well with other inmates and he has had visits with his family and lawyers. the appeal is expected to take months if not years to be resolved. shannon: claudia, thank you very much. today's job numbers paint a dire

picture for hiring. but what do they say about the economy as a whole. we have a panel of experts who can tell us when we can expect a full recovery. air-conditioners at full blast with scorching hot temperatures. we'll look at measures people are considering to beat the heat. >> in the arizona desert we don't have to worry about anything but the cactus falling over. let's take a paint project from

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shannon: 87,000 customers still without power in ohio. residents say the was like nothing they have ever seen before. >> i thought it was a tornado at first. the wind was really strong, and it was pretty bad. >> the rain was blowing diagonally. and i couldn't see out my window. >> mother naturer to it up once again. shannon: millions of us are still living with that heat wave. >> reporter: it will be changing but it's slow to come. so just be patient for a couple more days and we'll get there. the storms we saw, not any widespread system we are dealing with. it's summertime and hot and humid. when you get temperatures like this we see the thunderstorms pop up.

we'll see that the next couple days. look where we are temperature-wise. it feels like 108 degree in chicago. 105 degree? in st. louis. that's why we have the worst of our heat advisories. that red color, those are heat warnings. 25 states dealing with some sort of heat advisory warning, watch or advisory. you see this beginning to build here across the mid-atlantic. this air mass will move in today and tomorrow. we'll deal with this a couple more days. you see where the heat is. it's stretched across the east. across the west you have been dealing with record low temperatures. if you have warm someplace you have to have the cool in the other plays. you see that green, that's the of that will begin to dive down and make things get better but not until sunday.

tomorrow you are looking like this. still warm, the warmest day we'll have across the east coast is going to be tomorrow. it will feel like 108 degree in washington, d.c. 101 in new york. then we'll move forward sunday. up notice the color all calms down a little bit. not quite as bright of red. 94 in kansas city. 83 in chicago. 90 in new york. it looks like we'll get a much needed break this coming week. then we'll start to warm things up across the west. shannon: i still have neighbors without power so i'll have to out up for an a.c. party at green house. thank you. america's job crisis and today's jobs numbers are painting a not so pretty picture.

if you look at the numbers it's part of a disturbing month-long trend. the u.s. did gain 270,000 jobs in january. by april we reached a new low, 68,000. we climbed our way back up to 77 ,000 before today's report. but beyond the unemployment lines what do the numbers say about our economy as a whole, where we could be headed and when if ever we'll see relief. we have a political commentator and the vice president of news corp and melissa francis. welcome to you all. melissa i want to start with you. put these numbers in per peck tough for us. what kind of numbers do we need for a bigger recovery? >> 200,000 to 300,000.

our economy is stalled. the numbers are worse than they look. the number that includes all the people that are not even looking any more. that number is up to 15% and it ticked higher this month. shannon: a couple things we saw here, the workweek grew, and hourly wages were up. are those positive? how does that factor in? >> i think the overall thing is the job numbers are fair and unfair for a president. they are unfair because monthly job number does many tell you that much about the economy. it gives you indicators here and there. but they are fair in another sense because paul presidents are judged about it and this president in figure predicted that the unemployment would be down 5.6 at this time. and joe biden was telling us we would have 250,000 to 300,000 jobs. i think it's the context in which these are viewed.

>> more hours worked and paying workers more. employers are doing everything they to be not hire. can i give you this extra bit of money so i don't have to hire anybody else. that means there is no confidence and that is not good. shannon: the president is campaigning in key battleground states. where they are suffering. how does he talk folks through it and assure them that he's going to in a second term do a better job? >> it's tough because the earmt has to make is we lost 741,000 jobs the last month of the bush administration. if that trend continued we would be closing in on 30% unemployment. it's a tough argument. ed the thing is we need a jobs bill like the one the president proposed. firefighters, police officers. we have a lack of demand in this economy. the entity that can jump-start demand is the government like it

or not. >> by that measure they predicted on the eve of the stimulus unemployment would be down to 5.5% be or 5.6. by their own measure. they also told us it wouldn't go over 8%. >> you have to think about it logically. the stimulus money doesn't come out of thin air. it comes from me and from you in the form of taxes. if i had that money myself i would create this demand john is talking about. but i don't, i'm paying tonight taxes instead. the government may be saying they are hiring people but half the money is getting lost along the way. it doesn't work the way it would work if we were experiencing the money ourselves. >> that's the point. people and businesses are not feeling confident. >> the government is taking my money. >> they did this in 2009.

it looks like george h.w. bush. the recession ended in 1991. in 1992 unemployment was still very high. just under 8% in july. and he got killed by it. he later would say it was recovering. but it wasn't. in political terms. i think the fear is not just that people are not hiring. there is a lot of money on the sidelines. what the president has to fear is not just the people out of work. but the people that have a job and feel that it's shaky. >> reporter: that's the whole point of why you need a government stimulus. >> what is the measure? >> when you have 741,000 jobs being lost. >> by its own measure -- he deprick thed all of this would happen and it didn't happen. shannon: john, you are talking about government solutions and you mentioned the jobs bill. the president talked about the

package he has. the house response is we passed several jobs bills and they go into the senate are everything dies. where do you find bipartisanship on this? >> it's tough in an election year. boehner and romney are probably high fiving each other over this report because they know lit help them in november. it's a political year and it is what it is. but the reality is people need jobs. why not pass it and give them jobs. shannon: >> we have passed chunks of it and it goes to the senate and nothing happens. >> if you want to consider a tax loophole for corporate jet owners -- i mean, the problem is when you have a tax cut, when people are feeling not confident, they say they pay down bills, they don't spend it. what we need is to prop up

demand. to get it to the point -- >> we tried that and we have seen -- when you talk about kane, the government can't afford to rack up anymore because that's making people not feel confident. >> if it were true the markets were worried about the debt, wong long-term interest rates be through the roof? >> i think we tried the government solution. >> they don't call it a stimulus anymore. it's called a jobs bill. >> when the money ran out the jobs dried out. they did bail out some towns. it didn't have the effect of jump-starting the economy. it just stopped. it didn't do what vice president biden said it would do.

>> they should have had a -- >> they didn't do it by their own measures. shannon: this side of the table feels like the government is not going to solve the problem. what will solve the problem. >> we need confidence. we need the economy to grow. we need businesses to be more productive and sell products around the world people want to buy so they can hire more people. we need confidence and consumers to spend and businesses to hire. higher taxes won't make that happen. the government tried to be this artificial sometime throws do tonight their place and it didn't work. shannon: thank you both for a great discussion. could this be true? new research showing some extra weight could be good for your heart? how is that possible? we'll find out. lou gehrig's home run baseball from the world series is being auctioned off.

it's been in the same connecticut family for years. find out why they are selling it now. >> today i consider myself the luckiest man on the face of the earth. a party?

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shannon: a philadelphia firefighter is under investigation for giving his breathing mass to be a woman was rescuing. as carried mary jackson to safety he used the mask to get the smoke out of her face. but the reaction from department brass shocked him. he did get continue trouble. in addition to saving jackson's life he also gave her $500 of his overtime pay to help her get back onto her feet. we hope that story has a happy

ending. information on how weighing a little bit more could help save lives. heart failure patients carrying extra pounds have a lower risk of death than thin or underweight patients. dr. garner, good to see you today. tell us who we are talking about. what kind of patients are we talking about? >> patients who have had hart disease already. the heart pumps blood that fills this chamber on the left side of the heart. that gives oxygen to all thees . but it starts to build up in your lungs and you can't breathe properly and you feel sick if it stops working properly. typically the doctor would say you have heart failure, loseweight. wrong.

it's similar to coffee is bad for you. it's an incorrect statement. ulcers are caused by stress, wrong. so don't tell your patient with heart failure lose weight because you may kill him. shannon: the patient who has had heart failure, let's talk about the fact that having on some extra weight is not the same as having extra fat tissue. >> reporter: not all fat is created equal. if you have good fat building up, sumo wrestlers are in great shape. there is good fat that cause your body to burn fat. think of j-lo. shannon: you say there is trouble if you are looking at fat in the midsection. >> if you look like an apple that kills you. that's no good.

shannon: no fat albert but yes on j-lo. any suspicion on what the extra weight may do for these patients to protect them? some way? >> fat contains anti-inflammatory medication. it's been found for people with heart attacks or stroke that they are less likely to get a second heart attack or stroke they keep theweight on. also they have increased adrenaline. the adrenaline speeds up problems with the heart. plus the fat stores nutrients to help repair the body. we may use that as chemicals to inject in other people. curing mice that are obese with injections of this type of fat. shannon: you mentioned sumo wrestlers. is it possible there is muscle mass that is of benefit?

>> the bmi, the body ms. index is not correct. the best way to evaluate for fat is the waist. if you have a 40-inch waist and around main's not good. the muscle mass is important for healthy living. it helps the body work. shannon: i'm assuming at some point there is a negative correlation. do we know how much is too much? >> when you tell people to lose weight they do worse. some of the medication wheeze give them cause them to keep their weight or increase the weight. not on purpose. a lot of this we are extrapolating. we are not 100% sure. this is a causal effect or coincidence. if you have had hart failure, heart attack or stroke, i would think twice before i go on a crash diet.

shannon: are there other studies that would give us more information? >> they weren't sure women were affected the same. what about children? is it better to keep children? what's the correct weight? we are firing the immune system doesn't work as well if you are too thin. you may end up getting leukemia or other diseases. those are studies to find out how to harness the benefits of fat. shannon: we are talking about people who have already had heart failure. if you haven't gotten to that point, is weight management important? >> if you haven't gotten to the heart attack, you are not in heart failure. run, exercise, eat right and lose weight. but it switches and switches when you get the event. once you get the heart failure it switches. we are not telling people who are not sick it's good to be

obese. but once you get to have the hart problems it may not be that bad. shannon: thanks for telling us we can keep our coffee, too. >> people assumed things in the past without studying them. now we have evidence-based studies. shannon: a factory in ohio is bringing jobs back to america from china. we'll have the big celebration featuring mickey mouse, minnie mouse and the former first lady why nancy reagan. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families

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shannon: nancy reagan celebrating her 91st birthday

and getting help from a few stars who burst onto the scene when she was just a kid. ♪ happy birthday mrs. reagan ♪ happy birthday to you [happy birthday, mrs. reagan!] shannon: they were at the reagan library. president reagan was one of the live tv announcers for the granted opening of disneyland in 1955. in today's "on the job hunt" we look at starbucks and how it's

boosting the manufacturing sector. mike tobin is in chicago with the story. >> reporter: the starbucks chief launched a program of his own. you have probably seen it in the stores. create jobs for usa and we are just starting to see the fruits of that effort. if the bottom line was the only motivator, someone in china would be doing bob's job. >> they have been taking our jobs off of us. it's about time we took a bit of their jobs off of them. >> he works for american mug and stein in ohio which once called itself the pottery capital of america. he could not handle the demand without financing. traditional banks turned him

down. starbucks is linked to the opportunity finance network which focuses lending on job creation in poor communities. >> they came in, looked at my paperwork, said they couldn't understand why we weren't given the loan. but they would be one to make us a debt consolidation loan. >> reporter: 8 jobs were created and starbucks says orders will be coming for the long term. here is the finished product. this has been handled 20 times by the time it reaches your store shelf. every time someone touches it the labor cost goes up. they can retail for $9.95. if they continue to use cheap overseas labor it would be about $1 cheaper. but this deal is about making a statement while creating american jobs. >> i hope it gets people to pay attention to the fact it is possible to lend in these economic conditions >> reporter: in the end eight

jobs won't turn things around for east liverpool. but the people involved are hoping to generate some momentum and in the process they are drawing a lot of attention to that struggling little town. shannon: it's good news. mike, thank you very much. this is a fox news alert. we just confirmed that george zimmerman who is facing murder charges in florida in the death of an unarmed teenager just moment ago bonding out of jail. you may remember he did originally bond out but the judge called him back in, felt he had lied about his financial circumstances and set the bond higher at a million dollars. today he reached the thresh hold to bond out at that level. george zimmerman now again a free man at least nell is tried on charges -- murder charges connected to the death of trayvon martin. we are back with more news after this. are you receiving a payout from a legal settlement

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