>> that's why we brought you here. >> i am here to protect yourself from each other. >> good to it have you. >> glad you stopped by. that will do it for outnumbered. happening now starts now. right now three developing stories we are watching right now. we are waiting for president obama to nominate a new head of the veteran's department. and what we are learning about the man trying to clear up the mess. >> and general motors and the faulty ignition switches. and white house asking congress to help combait the flood of immigrants. >> two big rowelings from the supreme court today. welcome to this new hour of happening now. i am jon scott. >> big day to kick us off on

july 4th woke. >> short work woke. >> and a big news week. hi, everybody. i am jenna lee. >> the supreme court rowelled in favor of hobby lobby. 5- 4 decision. closely held businesses can't be forced to provide free contraception coverage to. os if they object to it c contrace contraceptive. the white house said the ruling will jeopardize speaker's sxhelt speaker boehner said it was a ruling for religious freedom. >> and this illinois mother. the justices say public sector unions cannot collect health care fees from home health workers who are not union members. the woman who brought the

lawsuit against the union. first shannon bream is live with more on the hobby lobby decision. joishgs we heard from the green family, barbara green speaking on behalf of the family. it is not only a victory from them but others who want to live out religious freedom. it was a 5- 4 opinion. and justices ultimately listed the religious freedolac and said it helps for profit owner companies. and this is the attorney with the becket fund for religious liberty and represented hobby lobby. >> today is a great day for religious liberty. it issued a careful and narrow ruling and americans lose their religious freedom when they go

out and hope a family business. we are thrilled with this decision. >> you can hear the protestors. both sides out in full force over the controversial topic. justice giowa nsberg said the court got it wrong by elevating the religious beliefs for the owners instead of those who work for them. >> the court's decision tries to limit itself to this issue and closely held corporations and invites a host of me, too religious objections from other companies. and medical prosedures and vacs naugzs and blood transfusions. >> we are hearing from the folks on capitol hill. democrats are outraged and sharply disappointed and vowing to take action on capitol hill

to over turn or mod foy what the supreme court has done here today. so that is the volley in this case. and we'll so what happens back to you. >> the narrow ruling that shannon talked about majorly impact businesses and employers. and the irs closely held cooper canerations account for all businesses. it didn't benefit google. >> and labor unions take a hit in another supreme court decision. pamella harris is the home care worker sowed arguing she shouldn't have to fork over member dues to a union she didn't want or mean to be a part of. we are in illinois, mike? >> reporter: and john, essentially what the supreme court ruling said, no one can

force the little home to be a union shop. pam harris is over joyed and relieved that the supreme court ruled that people who provide care for their own families are an exception. harris collects state money for josh. she can't be a state union employee. you have a right to associate or not associate with whomever you want and she can't be forced to it join a union or pay dows. >> it means no third party intrusion or union contract between my son and i and union rowels and regulations how i deckitate the providing of care that josh needs. >> the union said that harris collected and shouldn't get a free ride. the sisu the ruling places at risk the system of home health

care over the state and nation. back to you. mike, thank you. >> isis fighters in iraq formally declaire claring the is slammic state. they are demanding allegeiance as it tries to draw the maps of the middle east single handedly. joishgs there is a slick new propaganda video for the new islama state in the middle east. they are pledging to redraw the entire borders of the middle east. >> we will break other borders also. >> islamic militants showed a captured iraqi and inserted epglish. the end of middle east as we

know it. >> break out the borders of jordan and iraq. >> the new leader of the islamic ka la fed. >> and they showed discarded uniforms and badges and iraqi soldiers held in a small room and a voice called them idiots. the insurgent declare the full extent of isis bloef. even talking about jerusalem. >> it is rejected by other islamic militants groups that are fighting in syria. and it was called delougzal and a lot of friction and fractions between the the different groups and also we are hearing that the

iraqi military is pushing hard in tikrit. and launched a 3 or 4 day operation to remove and out of the isis fighters. the military in iraq is making progress, but militants are holding on to's large part of land between syria and iraq. >> iraq is splitting apart. sunnis on one. and shia ones other and what is behind the hostility that dates back so many years. we'll look closer coming up on happening now and if a split makes sense or not, jon? in ukraine, leaders of ukraine and russia agreed to work on stopping hostility between kiev and pro russian separatist.

and the ukranian president looks to vote on the ceasefire. and there is new fighting despite the ceasefire. and injuring one person there. and we can't forget north korea. two americans facing trial a cowed of hostile acts. they were tourist and arrested shortly after arriving. this is after north korea fired two short range missiles and defying a un band. gregg? >> those charges are laid against the americans and are vague. officials claim they are backed up by testimony and evident. and the united states is taking it seriously. one of the americans 56-year-old jefferson foley and he is a street worker in ohio. and taken in custody.

after a beebl was found in his rom. he was interested in experiencing different cultures. and twar year old matthew miller demanded a sylym. they were part of a commercial tour group orgnewsed by companies outside of north korea. the state department is now saying that americans should not be a part of the tour groups and could rick detention. and a 44-year-old korean american kenneth bey arrested for trying to over through the regime. serving 15 years of hard labor. experts are all saying that the young leader of kim jong-un is behind this and trying to get

taerngz for his country a-- attr his country. and he is firing off mussils and they are sent in violation of un sanctions and issuing a new call for the u.s. and south korea to it call off military drills in the coming summer. no date set for the trial of the americans. back to you. >> oscar pistorias murder trial. a panel of experts said the olympian was not mentally ill when he shot and killed his girlfriend. a psychiatrist said that pistorias suffered from zoi zie disorder. he admitted shooting her and

thought she was a intruder. the legal company will weigh in on whether this will be a game changer of the murder trial. >> and a police officer on top there. how the tense and dangerous situation ends and we'll tell you more about that it as well. bob mcdonald led a large company. can he turn around the dope seeded problems in the va. hi, i just signed up for your credit report site and i have a problem. i need to speak with your fraud resolution department. ugh, we don't have that. what should i tell him? just make that super annoying modem noise... (shuuuuuuuh....zzzzzzzz...de ee...dong...shuuuhh...) hello? not all credit report sites are equal. classic. experian.com members get personalized help plus fraud resolution support. join now at experian.com.

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we have heard a lot lately that hillary clinton is running for president in 2016. the washington post identified one of the top ten list of republicans who could be the 2016 nominee. joining us is michael warren staff writer for the weekly standard. it is fun to talk about this kind of thick. look at the step people from the washington post puts in there as stop ten candidates. jeb bush, marco rubio and rand paul, scott walker and chris kroift. and john ka sek. mike huckabee and bobby ginnedal

and ted cruz and paul ryan. you say three counted out altogether. >> in that he mentions mitt romney thrown around. why don't you give it a third try. with him and jeb bush and mike huckabee they haven't been in elected politics and not indicated they want to run. older guys who have been around for a while. dismiss them out of hand unless they actively say i am interested in the issues that are coming up in the late obama term. >> generally two races is enough for most candidates. you think mitt romney has a third race in him. >> he hasn't indicated and there are younger and newer folks in the republican who are viable. and you can so a comprehensive

list. governors and i didn't see rick perry on the list and he may run again and you have rand paul and paul ryan and rubio. rubio is making the best of the most affirmative steps for running for president. >> you say though, that it might be early to pick candidates. the party has a bigger job. >> instead of shopping for candidates, the party has to figure out what thi are going to represent to 2016 and what are their ideas and, and i think marco rubio talking about not tax cuts which you expect, but family- friendly tax credits that is a new creative idea. he talked about it in a speech. and rand paul who is pushing in different direction on the foreign policy side. and some of these candidates are putting forth new ideas and

getting creative, that is the first step before you get an actual cappedidate. >> you can't wait for the party platform to talk about that thing. >> a leader running for president is someone who develops the party platform. looking at candidates before they became a nominee trying to shape their party and move beyond the past. and talk about the future, you heard that from bill clinton. and more moderate turn of the democratic party. and ronald reagan and making it a conservative republican party. and what potential candidates to need to be doing. >> democrats have arguments on these issues as well. and you have the fiscal conservatives and maybe whether they be tea party folk or not.

and say we have to get the budget under control and stop the deficit spending. you have moderates and a lot of wings to the republican party and so it is a little tough other than the bumper sticker that said obama care bad. it is tough to come up with one unifying theme. >> that's what the parties are. they are coalition of different interest groups. the republican party finds the one guy they all agree with and that's who they go with. and democrats are scrabbling. and it looks like hillary clinton getting a coronation for the nomnition and republicans are trying to figure out what the right balance is foreign policy wise and domestic agenda and what does the policy platform look after the camerament>> and couple of years to figure it out. >> thank you. >> and the supreme court rules

in favor of hobby supporting the company's claims that the man date of the affordable care act and violating religious freedom. we'll look at that going forward. and a massive manhunt in a major city. a gunfire leaves nine people wounded. >> oscar pistorias was not mentally ill when he shot and killed his girlfriend. >> mr. pistorias did not suffer from mental illness at the time of the

>> police on a manhunt in new orleans for two suspects and ended up wounding nine bystanders and they have more on this. patty ann? >> nine people were shot in the gun fight early sunday morning and they are looking at images taken from surveillance cameras in hopes of identifying the two shooters. it was taken above a bar. and stills show different steals of the scone. two men shot at each other and hit bystanders. the new orleans police chief called on anyone who may have information about the suspects or additional video footage to contact police. it was the third major shooting on bourbon street in three years.

>> thank you. the united states supreme court rowels in favor of hobby lobby and sdoigd that the birth control man date of obama care violates religious rights. some companies can not offer contraception coverage to employees. >> and jana, what does it mean going forward? >> is this going to apply to other companies and other religious interest besides this hobby lobby case? >> you can bank on that, jon. those who oppose obama care hope that the supreme court tugged on a thread that will undo the program. other closely held companies will find religion if they disagree with the birth control man date. that is going to happen. >> here is a tweet that majority

leader harry reid sent out. it is time that five men on the supreme court stop deciding what happens to women. >> if you flip that around. it is time that two women stop deciding what happens to men? >> it is not a woman versus man. it i think it is a religious issue and a corporation issue. and whether or not the government has a compelling interest to man date that the government pays for birth control. in this case, there is a less restrictive alternative. and doesn't require the corporation and family that has political beliefs with the alternative. and the government themselves can pay for. it and you can go to planned parenthood and payment by insurers and people can choose to work elsewhere. >> i misspoke.

there are three women on the supreme court these days. i forgot that. and nancy pelosi writes. the supreme court took an outrageous step against the rights of america's women and set a dangerous pres dept that perm mitt for profit corporations to pick and chose which laws to obey. >> the writing from the court, that this was not a law that was passed. it was not written by the representatives in congress. it was a decree from the department of health and you machine services and cathleap sebelius. >> and back it up a second. before obama care, hobby lobby was paying for the birth control when it was not shove down its throat. are they saying if you let us dictate our. o health care we'll do the right

thing. but you shove it down our throat this is a consequence. maybe there will be headway there. >> and the distinction, this is not all methods of birth control. there are four they consider to beitanta amount to abortion and that's what they objected to. and we'll tufrp to the oscar pistorias trial. he was ruled not mentally ill when he shot and killed his girlfriend last year. from a panel of experts who studied him and released the report today as the murder trial gets under way. the mental evalues ordered after a psychiatrist said he suffered from a anxiety disorder. is this a game changer in his trial in >> i don't think it is a game changer. the defense didn't need this. it was self defense.

they said he acted in self defense and might have suffered from anxiety and a heightened sense of being foreful because of the problems with his legs. and that contributed to it a self defense. this doesn't change the theory at all. it said that the government's doctor who said he could distinguish from right or long. and all they are saying, he anyhow the difference between right and wrong and he shpt stand trial. >> and not guilt by reason of insanity. >> i don't think it changes his defense. if the sidewalk tryst had found he was insane or mentally detective at the time of the killing and that would have benefitted oscar pistorias. we are going back to the beginning now essentially. we had a nice 30 day break from the trial. and oscar continues with his

defense and he doesn't have to be insane in order to not be guilty. and it was a 30 day hiatus and results in nothing different from oscar pistorias. >> thank you, both. >> thank you. >> and turning to business nows. general motors offering compensation of victims of crashes involving faulty ignition switches. and foreclosed homes, how much better off are we now in and could those bad times return, next? óqoqúúñ@

a few hours from now the president will formally nominate the man who will clean up the va. bob condon will be nominated. he is a west point graduate and a former army captain. >> general motors is preparing to payout billions in composition for the ignition. it will not limit the payments to injured people and those killed. >> and gm unveiled the compensation plan for the 2.6 million faulty ignition. it wiit is one caveiet.

their air bag must not deplay because of the switch defect. ken fineberg has essentially an open wallet. nany contributory negligence of the driver, intoxication, speeding, texting on a cell phone, et cetera, irrelevant under this program. >> gm will accept claims by august 1st. once you are paid out you can no longer sue the company. this is settling the claims and

moving forward. how far have we come since the financial crieses? this is a subprime loan. the subprime loan had a starring role in the housing bubble and caused foreclosures and plunge the economy in for dead. the subprime loan has returned sort of. does it still pose danger to our cover. we have john here. talk to us about subprime loans and are they back? >> we are seeing signs of them return nothing the housing market but frankly little in the mortgages. where i am seeing it in autoloans. double-digit loans for people with bad credit. you want a economy to get credit

to those who need it most. but you worry when you start it see this kind of thing that it leads to it the risk- taking that got us in the last crisis. >> one of the issues is because they were packaged and sold as securities. and they were used a financial instrument. >> we are seeing it in the autoloan market. but not much in mortgage. wall street is gobbling them up so they can get higher yield investments. interest rates are so low, they want higher yields and a subprime loan, you get a higher interest rate and investors are buying these things. >> and one of the points that come up, you want people to have access to loans and you don't want to dry up the market and be too strict.

that is the complaint we heard over the years, where is that right now, john? what has happen in the last few years, people who need credit least and best credit records and higher incoolds are the ones who have gotten it. people out of the financial crisis with bad credit records and low and middle incomes, they haven't been able to get credit and as a result they haven't been able to refinance their mortgages. it is still a tough environment for a lot of people out there. >> it is amazing to think that six years past the financial crisis and 6 or 7 and we saw the early signs of it in 2007 and full tilt in 2008 and 9. and suggesting we are in a lost decade, john, and that the economy hasn't improved as much

as people perceive it? >> it is the worst recovery that we have had on record. we are averaging growth of two percent. and we will get much faster growth in a recovery. we have had more than a lost decade. we have had 15 year was lost enterprise. median household incomes are lower than in 2,000. we had a stock market bursting and then the housing bubble burst anything productivity growth stretching down and it is a hard stretch for americans and right now, a lot of people expected the economy to pick up growth and speed and we are not seeing it so far. >> jon, great to see you as always. >> thank you, jenna. >> fox news alert.

bodies of three teenagers abducted as they were hitchhiking. bodies were found in a village in the west bank. the village called howhull. and large numbers of soldiers are searching the area. they have been missing two and half weeks. john huddy is in the mideast bureau with more on that, john. >> reporter: the search for three teens appears to come to a tragic end. they were hitchhiking home when they disappeared and israeli army conducted an exhaustive search arresting hundreds looking for the teens. family members of the teens, israeli officials hoped they were alive. but they found the bodies and

unclear exactly. we talk about the location we are hearing various things in terms of where those bodies were found. even last night talking about the hope they would be found and it was a massive rally in tel aviv calling for their release. israel military officials blamed hams in the west bank and unclear the violence we have seen is going to increase more. at this point, it is looking like the search for three teens is coming to a tragicen. back to you. >> john, thank you. >> and more on that breaking news as we get it. hostilities of the branches of the muslim faith go back centuries. and now word of a civil war in iraq. what is the major difference between sunnis and shea. >> and a robby suspect and how a couple of ordinary citizens

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escape detection by airport security. and what you need to know about this. and you think a teenage girl can pitch knuckleballs and get streaks? stick around you will meet an amazing girl who did just that it right at the top of the hour. secitarian violence grows in iraq. vice-president boyd boyd proposed splitting iraq in 2006. it would give each ethnic group its own state. now they are taking a second look. in order to understand we want to talk about the mange differences of two muslim sects and why they are fighting to begin with. gregory is a senior fellow and joins us on the phone. gregory, is there a different way to understand the mange differences between the sects in >> it is in the beginning of

islamic history and the dispute over leadership in the community. and over the 1400 years, it is a social marker. sunnis and shia in iraq are fighting over power. >> and so walk us through this. because people are talking about dividing up the country along the line. in the past, if you were in a generic street in iraq would they live on the same block together? >> yes, in major cities like baghdad without a doubt. maybe not in the villages. in the upper classes there was intermarriage between sunni and shia. for most of the history it was not a primary division. but it is in the last 25 years or so with the collapse of the iraqi state.

when the state is not there to provide security and services, you look to the community where you feel safe and protected and because of iraq history. that is sunni and shia and in the northern part of the country kureds. >> how do the kureds fit in this? >> they are not arabs. when we talk sunni and shia we are talking the arab. the kurds are identity and they speak kurdish and not a ra bic. >> and so going back to the arab world. 6 billion muslip in the world and who has the majority if you look at the map of the middle east. is there a clear majority party in this and how does that play in to what is happening in iraq?

>> in the over all sunnis are the vast majority but shia is substantial. ian is almost 90 percent. and iraq 60 percent. and then in can you watt and saudi arabia. and in the persian. shia would be a majority. >> greg, what is your take away? having studied the groups. you think it makes sense to have the divisions or not? >> i think in terms of the kurds. they form a distinctive unitty in iraq. sunni and shia arabs it would be difficult to devoid. any kind of formal partition would not be stable. >> very interesting, greg. we would love to have you back

on the program to talk about the history and specific differences are and perhaps what they are not. thank you very much. >> severe weather in the country. some areas are fighting wind and tornados. it's always the same dilemma, who gets the allstate safe driving bonus check. rock beats scissors! wife beats rock. and with two checks a year, everyone wins. switch today and get two safe driving bonus checks a year for driving safely. only from allstate. call 877-218-2500 now. zach really loves his new camera. problem is...this isn't zach. it's a friend of a friend who was at zach's party and stole his camera. but zach's got it covered... with allstate renter's insurance. protect your valuables for as low as $4 a month when you add renter's insurance to your allstate auto policy. call 877-218-2500 now. what are you doing? we're switching car insurance. why? because these guys are the cheapest. why? good question. because a cut-rate price could mean cut-rate protection.

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a police officer struggles to fend off an attacker until he gets some unexpected help. you see the men fighting on the ground in the dashcam video. fortunately some good samaritans jump in to help restrain the suspect. it all started with a burglary call. the suspect attacked the officer. both men were treated for injuries at a local hospital and the suspect now faces self-felony charges. extreme weather alert now. a tornado warning just issued outside des moines, iowa.

keep an eye on that. meteorologist janice dean live from the fox weather center. >> of course, let's take a look at it. there is our tornado watch until 6:00 p.m. local time. our warning west of des moines for madison, guthrie and adair counties moving eastward. this is doppler radar indicated. we'll watch this area throughout afternoon, into the overnight, parts of iowa and especially nebraska, through illinois, indiana and wisconsin. that's where the storm prediction center has deemed this a moderate risk for hail, damaging winds and, yes, destructive tornadoes throughout the afternoon and the evening, including the city of chicago. we are watching you through the storm overnight tonight and into tomorrow. if i could real quick, john, we are watching the tropics. this could become our first named storm of the atlantic hurricane season. it would be arthur. look at the computer models as we head for the fourth of july weekend watching this very carefully. this is one of our computer models. this is the european model that did so well with sandy, sort of

hugging the coastline here. as we head into fourth of july, a nasty day along the outer banks of the carolinas, up toward the mid-atlantic. >> you'll have a busy week ahead. janice dean, thanks. airport security around the world could be changing after reports that new bombs which can escape detection are being developed by terrorists in syria and yemen. from world cup to out of this world. how this header inspired an idea for one country's team to go to space. mayo, corn dogs...you are so out of here! ahh... the complete balanced nutrition of great tasting ensure. 24 vitamins and minerals. 9 grams of protein... with 30% less sugars than before. ensure, your #1 dr. recommended brand now introduces ensure active. muscle health. clear protein drink and high protein. targeted nutrition to feed your active life. ensure. take life in.

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>> that's right. literally. >> that's for sure. thank you for joining us. mark is in for gretchen on "the real story." >> thank you. we have a fox news alert and a tragic end to the search for those missing israeli teenagers. they were kidnapped after hitching a ride home from school. good afternoon, everyon un. they disappeared back in mid-june. frenkel was an american, in israel but his family has ties, we are told, to brooklyn. his grandparents lived there at one point at a huge amount of support for him in that area. israel is accusing the islamist group of hamas of being behind the abduction of these teenagers. the group is neither confirming or denying involvement at this point. these are huge developments from jerusalem this