Google said to be working on messaging app that employs AI

Google is implementing a new messaging app that may employ artificial intelligence to create some of the company's data smarts with a chat bot service inside the software, according into a report in The Wall Street Journal.

The new chat service would allow users to talk with friends or ask questions of the chat bot, which would attempt to find answers from Google's vast map of the Internet, the newspaper said. The launch date isn't known.

Users can already do that to a certain extent with the voice search function built into Google's search bot on mobile and the Web. By saying "OK Google," users can ask questions in a number of areas and the service will report back an answer.

For example, "OK Google, what's on my TV?" will listen for and match TV audio with a show currently on the air. "OK Google, what's this song?" will identify a song playing. "OK Google, what's the weather for tomorrow?" will bring up a forecast and "OK Google, what's Apple trading at?" will deliver a share price.

But the service is limited to certain queries and subjects. It appears that Google is looking to expand that with additional chatbots.

In November, it offered to buy 200 Labs, a startup that develops chat bots for various subjects, but the offer was rejected, reported the newspaper.

Instant messaging is an intensely competitive market. Facebook-owned WhatsApp is generally considered the leader followed by Facebook Messenger. Several regionally popular chat apps are also strong players including China's QQ and WeChat, Japan's Line, South Korea's KakaoTalk and also Skype, Viber, and Blackberry Messenger.

Consumer, business spending support U.S. third-quarter growth

The U.S. economy grew in a fairly healthy clip within the third quarter as strong consumer and business spending offset efforts by businesses to lessen an inventory glut, underscoring its resilience despite a raft of headwinds.

Gross domestic product grew at a 2.0 percent annual pace, instead of the 2.1 percent rate reported last month, the Commerce Department said in its third estimate on Tuesday.

While that was a sharp deceleration from the brisk 3.9 percent pace logged in the April-June period, growth remained around the economy's long-run potential.

The Federal Reserve last week raised its benchmark overnight interest rate by 25 basis points to between 0.25 percent and 0.50 percent, the first increase in nearly a decade.

The rate hike was a vote of confidence in the economy, which has been buffeted by slower global demand, a strong dollar and spending cuts in the energy sector.

"This is not an economy that is just muddling along. The GDP data today back up the Fed's decision to liftoff this month and paves the way for more rate hikes early in 2016," said Chris Rupkey, chief economist at MUFG Union Bank in New York.

While other data on Tuesday showed a surprise 10.5 percent plunge in home resales last month, economists cautioned against reading too much into the drop, noting that new mortgage disclosure rules had caused delays in closing contracts.

The National Association of Realtors said existing home sales tumbled to an annual rate of 4.76 million units, the lowest level since April 2014. The drop is in stark contrast to robust housing starts, new home sales and bullish homebuilder sentiment.

"Demand didn't change, the processing rules did," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "Look for a big-time rebound in December, as housing market fundamentals remain constructive, including falling joblessness, still-low mortgage rates, easing loan standards and plenty of pent-up demand from millennials."U.S. stocks were trading higher, also bolstered by crude oil prices, which eased off multi-year lows. U.S. Treasury debt prices fell and the dollar weakened against a basket of currencies.

When measured from the income side, the economy grew at a 2.7 percent pace, not the 3.1 percent rate reported last month, to account for a modest downward revision to corporate profits.

INVENTORIES STILL HIGH

Businesses accumulated $85.5 billion worth of inventory in the third quarter, instead of the $90.2 billion reported in November. That meant the change in inventories sliced off 0.71 percentage point from third-quarter GDP growth, instead of the 0.59 percentage point the government estimated last month.

A record increase in inventories in the first half of the years left warehouses bulging with unsold merchandise and businesses with little appetite to restock.

Despite efforts to whittle down the stockpiles of unsold goods, inventories remain relatively high and will probably weigh on growth in the fourth quarter. Estimates for fourth-quarter growth are currently around a 2 percent rate.

"The pace of stockbuilding is still quite rapid and implies a continued drag on output going forward as firms clear their shelves," said Michael Feroli, an economist at JPMorgan in New York. "There is some evidence that this process is well under way in the fourth quarter, though it could conceivably restrain activity on into the first quarter."

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a 3.0 percent rate in the third quarter as previously estimated. Spending is being supported by a strengthening labor market and rising home values. Savings, which are near three-year highs, and low inflation are also helping to underpin consumption.

Growth in business spending on equipment was raised to a 9.9 percent rate from a 9.5 percent pace. There were upward revisions to investment in residential construction and government spending.

The drag from trade was slightly larger than previously reported. A measure of private domestic demand, which excludes trade, inventories and government spending, was revised up one-tenth of a percentage point to a 3.2 percent pace.

There was a modest downward revision to investment in nonresidential structures, to account for ongoing spending cuts by energy firms following a collapse in oil prices.

Kobe Bryant gives Lakers a vintage performance in 111-107 win over Nuggets

Kobe Bryant's shoulder is merely fine, After sitting out of the Lakers' loss towards the Oklahoma City Thunder on Saturday using a sore shoulder, Bryant gave the Lakers an antique performance from the team's fifth wow the season, a 111-107 victory on the Nuggets in Denver.

In 32 minutes, Bryant led all scorers with 31 points, hitting 10 of 22 from the field and nine of 11 from the free-throw line. 

The game looked as if it might be over early, with Will Barton scoring 23 points in the first half, helping his Nuggets take a 21-point lead with less than two minutes left before halftime, but the Lakers cut it to a 13-point deficit at intermission.

Bryant took on the defensive assignment in the third quarter -- Barton scored just two points the rest of the game (25 in total to lead the Nuggets).

The Lakers outscored Denver by 16 points in the third period, taking a three-point lead into the final period, holding on to get their first win against a Western Conference opponent this season.

Jordan Clarkson added 19 points with eight rebounds and three steals. Lou Williams scored 17, Brandon Bass 11 and Larry Nance Jr. 10.  With Roy Hibbert and Nance in foul trouble, Bass played one of his best defensive games as a Laker, blocking four shots.

The Lakers shot 47.6% from the field, 26.9% (seven for 26) from three-point range and 75% from the line (24 for 32). Denver hit 45.6%, 36% (nine for 25) and 84.2% (16 for 19), respectively.

Gary Harris scored 21 points, Nikola Jokic 15 and Kenneth Faried 14. The Nuggets played without Emmanuel Mudiay (ankle), Wilson Chandler (hip), Danilo Gallinari (ankle) and Jusuf Nurkic (knee). 

The Lakers (5-23) play again on Wednesday, hosting the Thunder (19-9) at Staples Center.  The Nuggets (11-17) will also play on Wednesday, visiting the Phoenix Suns (12-18).

Miss Colombia Ariadna Gutiérrez Speaks Out After Miss Universe Snafu: ''I Was Able to Bring Happiness to My Country''

Miss Colombia Ariadna Gutiérrez experienced a ride of emotions on live television, nevertheless the beauty pageant contestant had only heartfelt words to discuss after experiencing such a disappointing experience.

The runner-up, who was initially named Miss Universe before being stripped of the crown minutes later after realizing that Miss Philippines was the actual winner, took to Instagram tonight to share a touching message about the entire snafu, and to thank fans for the support and love she's received throughout this time.

Posting a photo of herself making the shape of a heart with her hands on stage on Sunday night, Gutiérrez wrote, "After the storm comes the calm. I want to thank each and everyone of you who have sent messages of support and strength. Every one of you has become an incredible human being in my book and I am the most fortunate and thankful for having the support not only from one country but from the whole entire world."

She continued, "Your destiny is written for you. And my destiny was this. I was able to bring happiness to my country after becoming Miss Universe for only a couple of minutes... Today because of that COLOMBIA and the LATIN COMMUNITY are being talked about in every corner of the world. I also want to congratulate the Philippines for their new Miss Universe. The happiness that you must be feeling must be incredible. Life continues and in the future we will find out why things happen the way they happen. Thank you all for your LOVE SUPPORT and KINDNESS."

At first, host Steve Harvey made it perfectly clear that Miss Colombia was the winner. There were hugs, cheers, flowers, a standing ovation and everything you'd expect from such a happy moment. Things quickly took a turn, however, when Steve had another announcement.

"Okay folks, I have to apologize. The first runner-up is Colombia," he explained as the camera panned to finalists Miss USA and Miss Philippines, revealing that Pia Alonzo Wurtzbach was the actual winner.

"I'd like to apologize wholeheartedly to Miss Colombia & Miss Philippines for my huge mistake. I feel terrible," the Family Feud host posted on Twitter after the flub. "Secondly, I'd like to apologize to the viewers at that I disappointed as well. Again it was an honest mistake. I don't want to take away from this amazing night and pageant. As well as the wonderful contestants. They were all amazing."

Clinton Takes Shot at Trump: 'Shouldn't Let Anybody Bully His Way to the Presidency'

The war of words between Hillary Clinton and Donald Trump continued Tuesday in Iowa together with the former Secretary of State saying, "We shouldn't let anybody bully his strategy to the presidency."

Though she didn't mention Trump by name, the remarks were only available in the wake of controversial comments produced by the real estate mogul where he known as the bathroom break that they took through the most recent Democratic debate "disgusting" and said she "got [expletive]" in the 2008 election.

They also came as Clinton stood by her state that ISIS operatives are utilizing Trump in recruitment videos.

During the campaign event in Keota, Iowa, Clinton was asked a question by a high school student who said she's been bullied because she has asthma. "You're looking at someone who has had a lot of really terrible things said about me," Clinton responded.

"I think we are not treating each other with the respect and the care that we should show to each other. And, that's why it's important to stand up to bullies wherever they are and why we shouldn't let anybody bully his way to the Presidency," Clinton told the crowd of 700.

Early Tuesday, Clinton’s presidential campaign blasted Trump for what it called sexually derogatory comments.

"We are not responding to Trump but everyone who understands the humiliation this degrading language inflicts on all women should,” communications director Jen Palmieri tweeted.

In addition to making the sexually derogatory remark, Trump also attacked the former First Lady for taking a bathroom break during the most recent debate.

"I know where she went, it's disgusting, I don't want to talk about it,” Trump said. “No, it's too disgusting. Don't say it, it's disgusting, let's not talk, we want to be very, very straight up. But I thought that, wasn't that a weird deal.”

But, Clinton did mention Trump by name at her Keota, IA town hall when discussing national security and the "consequences" of his rhetoric.

Clinton stood by her claim that ISIS operatives are using Donald Trump in recruitment videos for the terrorist organization.

"If you go on Arabic television, as we have, and you look at what is being blasted out, video of Mr. Trump being translated into Arabic, no Muslims coming into the United States, other kinds of derogatory, defamatory statements," Clinton said. "It is playing into the hands of the violent jihadists."

At last Saturday's presidential debate, Clinton asserted that Trump was "becoming ISIS's best recruiter."

"They are going to people showing videos of Donald Trump insulting Islam and Muslims in order to recruit more radical jihadists," she said during the debate.

Clinton offered no specific evidence of the claim, and subsequently Palmieri said Clinton wasn't referring to a specific video.

"She’s not referring to a specific video, but he is being used in social media by ISIS as propaganda,” Palmieri told ABC News on Sunday.

In Iowa today, Clinton told her audience: "There is nothing they want more than to be able to claim that the United States is against Islam and against Muslims. And that then lights an even bigger fire for them to make their propaganda claims through social media in other ways. It also does something else. Our first line of defense in our country has to be Muslim Americans."

During a lighter moment at the Keota event, which was held after three students invited Presidential candidates to campus back in September, Clinton discussed publicly for the first time that her daughter Chelsea Clinton is expecting a second child.

“I’m gonna be a grandparent again. I have to tell you, it’s like the best news for me, and it’s the best club I’ve ever been in.”

Clinton holds two more events in Iowa Tuesday before taking a break from the campaign trail for the Christmas holiday.

Why Clinton won't respond to Trump's off-color attack

Hillary Clinton is playing a strategy that's backfired on Republican presidential candidates: looking to take the high road when confronted with a personal attack from Donald Trump.

Campaigning in Iowa on Monday, Clinton called Trump’s anti-Muslim comments “not only dangerous, but shameful,” and doubled on her charge throughout the debate last Saturday that she has become ISIL’s biggest recruitment tool. But the former Secretary of State made no reference to the headline through the day — Trump’s lewd personal attack that they lost from the 2008 primary to Barack Obama because “she got schlonged.”

Turning the other cheek when insulted by the bullying frontrunner has backfired in the past for candidates like former Florida Gov. Jeb Bush, who refrained from hitting back against Trump until long after the withering insult that he was a “low energy” candidate was baked into his image.

But Clinton’s campaign refused to take the bait on Tuesday. Using Trump’s favorite communication tools, Twitter, Clinton communications director Jennifer Palmieri explained Tuesday morning there would be no engagement on Trump’s "schlong" comment, made at a rally Monday night in Grand Rapids, Michigan.

“We are not responding to Trump,” she wrote, “but everyone who understands the humiliation this degrading language inflicts on all women should. #imwithher.”

Meanwhile, the pro-Clinton rapid response group Correct the Record, which coordinates with the campaign and defends Clinton against attacks, was uncharacteristically silent in the face of the sexist broadside.

The Clinton strategy appears to be to double down on attacking Trump over policy, including a vigorous defense of Clinton’s claim that Trump is providing recruiting material for the Islamic State, or ISIL, with his bombastic denunciations of Muslims. Thus, Clinton will show that she’s unafraid of taking on Trump, while refusing to engage in a mutually demeaning exchange of insults.

Clinton supporters argue that, unlike their candidate, Republican contenders were timid about starting a war with Trump over policy differences on immigration and other issues that could hurt them with the primary electorate fired up by Trump’s incendiary rhetoric. But Clinton is hoping those contrasts will energize her base without engaging in a demeaning war of words with the bombastic billionaire.

Handling Trump’s attacks without feeding into his playbook is a problem that has roiled the Republican field — and Tuesday's sexist comment was a sign of how the race could devolve if a general election battle pits Clinton against Trump.

In the primary, Trump has used personal insults to make candidates seem weak or unattractive or unfit for office, and their failure to respond only seems to confirm the truth of Trump’s attack.

He has poked fun at Sen. Marco Rubio’s hair and personal appearance. “I’ve never seen a young guy sweat that much,” he said after a debate. “He's drinking water, water, water. I never saw anything like this with him with the water.”

Taking on Sen. Ted Cruz, Trump has accused him of being “a little bit of a maniac” who lacks “the right temperament” to be president.

Three candidates who endured sustained drubbings from Trump -- Scott Walker, Rick Perry and Lindsey Graham -- have already dropped out of the race.

But Clinton’s top aides are betting that they can refuse to fight on his turf – personal insults and insinuations – while forcing him to engage on hers, even when it meant defending a comment Clinton made that seemed to have no factual basis.

On Saturday night at the third Democratic debate, Clinton charged that Trump is ISIL’s best recruiter and that his image has been used in ISIL videos. The existence of ISIL videos featuring Trump was not corroborated by any factchecks, and Trump demanded an apology.

“Hell no,” a spokesman said. Campaign chairman John Podesta on Monday night launched a Twitter offensive defending Clinton’s comments about Trump and ISIL. "Experts agree: @realDonaldTrump is an effective recruiter for ISIS."

Trump under fire for sexism after vulgar Clinton jibes

WASHINGTON—Republican frontrunner Donald Trump found himself accused of sexism again Tuesday after he coined a vulgar new term of abuse while attacking rival Hillary Clinton.

Whipping up a raucous crowd of supporters in Michigan on Monday night, Trump’s scorn for his Democratic rival took a sexually graphic and private turn.

Recalling the 2008 presidential race, in which Hillary lost out to Barack Obama in the battle for the Democratic nomination, the billionaire real estate mogul appeared to reach for a Yiddish term.

“She was favored to win and she got schlonged. She lost, I mean she lost,” he said, apparently turning the noun “schlong” — a penis — into a verb.

Then, with the partisan crowd cheering him on, he turned to an incident on Saturday when Clinton returned late to a televised debate after a bathroom break.

“I know where she went, it’s disgusting, I don’t want to talk about it,” Trump said. “No, it’s too disgusting. Don’t say it, it’s disgusting.”

Clinton did not address Trump’s comments directly, but when a young woman at a campaign rally asked her what she would do about bullying, she used the opportunity to launch a not-so-veiled attack on her Republican rival.

“We shouldn’t let anybody bully his way into the presidency, because that is not who we are as Americans,” Clinton told a crowd at a school in Keota, Iowa.

Trump’s campaign trail outburst was not the first in which the thrice-married billionaire real estate mogul expressed distaste for women’s bodily functions.

In August, Trump triggered outrage when he insinuated that Fox News host Megyn Kelly had subjected him to sharp questioning because she may have been menstruating.

Trump’s personal attacks on women also extended to his Republican rival Carly Fiorina, of whom he declared: “Look at that face! Would anyone vote for that?”

Heated rhetoric

His latest remarks drew predictable anger, with liberal site Think Progress dubbing it an “astonishingly sexist attack.”

Clinton’s team urged supporters to denounce Trump and his belittling remarks.

“We are not responding to Trump but everyone who understands the humiliation this degrading language inflicts on all women should,” campaign communications director Jennifer Palmieri said on Twitter.

Trump, a reality television star turned White House candidate, has ridden out all the fury directed his way after previous outbursts.

Polls show the 69-year-old New Yorker remains the frontrunner for the Republican nomination.

His heated rhetoric has infused the campaign, perhaps most notably when he called for a ban on Muslims entering the United States.

Clinton pounced on those comments during the Democratic debate, saying that Islamic State (IS) extremists were using videos of Trump as a recruiting tool.

Trump slammed Clinton as a liar for that remark and demanded an apology.

None was given, but Clinton did appear Tuesday to shift her story somewhat about jihadist recruitment efforts.

“If you go on Arabic television as we have, and you look at what is being blasted out, with video of Mr. Trump being translated into Arabic — ‘No Muslims coming to the United States,’ other kinds of derogatory, defamatory statements — it is playing into the hands of the violent jihadists,” she said.

Trump’s speeches are often unscripted, and supporters applaud him for what they see as his authenticity and disdain for political correctness.

A new survey, however, shows that those voters who have not been won over are turned off by his bombast.

Fifty percent of registered US voters said in a Quinnipiac poll Tuesday that they would be “embarrassed” to have Trump as president, compared to 23 percent who would be proud.

If Clinton were elected, 33 percent would be proud and 35 percent would be embarrassed, according to the poll.

Quinnipiac has Trump leading Republicans with 28 percent support, followed by Senator Ted Cruz at 24 percent and Senator Marco Rubio at 12.