take a while to play out. they are looking at what customers think. they also look at boarding process. a cover story about the merger. i talked about coffee and figuring out what they were serving. it was a detailed process. three years later, they are doing it all over again.

to zero.getting back they were integrating to huge companies. it's not just airlines. ceos always overpromise on these things. there is optimism about what's coming out of these mergers and it's hard to believe or. >> still to come, gun owners are leery of guns that open with fingerprints. ♪

>> can technology shape gun control debate? >> the president asked this question last week. >> if you set it up so you can't unlock your phone unless you've got the right fingerprint, why can't do the same thing with our guns? >> the answer is a little bit complicated. why can't we do that? >> it's not the technology that's compensated. we can put microchip in a firearm. you can set up so that there is a biometric identification system. you can use a radiofrequency device so a person wearing a ring or wrist he's has to be the person pulling the trigger. the complicated part is the politics.

gun rights activex -- activists have resisted moves to smart guns. >> what do they say? if they want more people to embrace gun ownership, you think this was a way who got people who are hesitant. >> that's the argument that entrepreneurs who have developed his guns have had in mind. least inweighed at inner circles of the gun rights movement, the nra and elsewhere by the fear that a move towards smart dunns is the first step down that slippery slope to the confiscation of conventional firearms. the government would be able to track who owns which firearms by means of those microchips. that is the argument. president has come out with this directive to do research.

will that make a difference? some money may be spent in some prototypes make it will. the prototypes are already out. people than trying to get this off the ground for a while. is question is whether there demand. the paradox is the biggest fans of smart guns are people who are basically skin -- got skeptics. -- gun skeptics. >> something new here is yes, we do have this tech elegy on our iphones and it doesn't work all the time. do you really want to chance it? >> that is another argument that's offered. there is something quite unusual about the firearm. without very well digital tech elegy.

unlike your phone which has been improved by the vision of computerization, unlike your car or your refrigerator or your dishwasher. works with the same basic mechanics that has been used since the 19th century. putting a microchip into the gun does not make it more deadly. that is the argument from some people. there is no point in tinkering with success. chinese authorities want to calm the market. >> they put in place a circuit breaker that halts trading. >> it cut of trading after the nine minutes of trading and the system was suspended in >> we will talk about the circuit breaker and we decided to put this in?

>> investors in china were unhappy that the market is so volatile and there's is not greater stocks will go down 7% in a day. it seemed like a great idea. let people calm down and think about it if stocks go down too much. 5%, weive minutes, -- will take a 15 minute break. we'll realize they did not want to sell after all. things did not calm down after minutes,, at seven they would halt stocks for the day. >> equity markets have come front and center. the circuit blaming breakers for causing all the volatility. that is not the only thing we should focus on.

the circuit breakers were designed and that's what scared investors. that could be the case. managing the market is almost impossible. stocks have gone up so much in the last year. they increased 150%. valuations on the shanghai exchanges are the highest in the world. the ratio is above 55. that's almost exchanges around the world are in this is internet bubble levels. >> if you look at some of the u.s. valuations, that's what it's like. >> they are treating the average company like it was and they are not all future alibaba's. you have a lot of penny stocks. we were a restaurant chain, now we are a tech company.

>> they are renaming themselves to sound more tech like them they are. been market manipulation. upfound one ipo that went 4000% in two months. a few months later, they restructured and halted trading. companies have the ability to suspend trading in their own stock if they say there is news pending. >> thanks for laying it out for us. her first feature was debuting at sundance. ♪

>> the theme is the fourth industrial revolution. of activity hopes growth. concerned there could be economic harm. shape the contours of this debate for us. robotsf people think will be making dinner. some say that's not the best thing. >> that's right. it's going to automate a lot of low skilled labor. there is a lot of inequality happening across the world when you look at the lower ends of the manufacturing sector. , that'ss permeate this

going to eliminate love jobs. there are estimates that are extreme. 80 million u.s. jobs might be destroyed in the next 50 years by robots. ask you talk about robert gordon. he plays a game called find robot. does he think robots are helping the way we live or making us more productive? >> he is pessimistic. he thinks the productive gains .f the past 100 years the next hundred years will be much less productive. despite the enthusiasm for machine learning and artificial intelligence. it's quite difficult to teach a robot to do very basic tasks.

he is definitely of the camp that there is far too much optimism around the potential for this fourth industrial revolution to make a game changing lead in the way we live. had the steam engine, electric dictation, computers, i was struck aligned in the story. it -- when we go back to factories 100 years ago, it took generation of plan to managers to realize we need to asrient around electricity opposed to these steam engine. even those who are very up domestic about these digital technologists think we're years

in hand years away for this productivity and the data would back that up. the place you would think this would hit the most, labor productivity, is nowhere to be seen. we are in a slump right now. it would play up in labor productivity, but when you compare some of the data we're not seeing this kind of return. >> without a doubt. mehave had two blooms in past years. in the mid-70's, 3% annual growth of productivity went down a half. a cent and then 1996-2003, you saw jump back. since then, we're back down. it wasn't that 1996 will see a real god computers.

we all got to go computers. it was attached to e-mail and etc. for all of this kind of work to allow us to do more. i have a smartphone in my pocket that i did not have 10 years ago, it is very difficult for that to translate into official statistics and most productivity. boost ine might see a the next 10 years, but right now it is nowhere to be seen. carol: now it is time to look at the back of the book. the first page of the section. david: she attracted a film festival. might have had it a big success. she had a very quiet film

and it has taken a lot longer than her peers to make a name for herself. you talk about kelly and which is done over the last couple years but it has not been easy for her to get the recognition you see in mayo direct is. >> exactly, and she makes films. low-budget. but to even get that level of budget and support and money to make a movie is hard. looking at her career trajectory thinking of what we said -- saw of movie stars. studio really brought it to the forefront for everybody. is interesting is it sounds like she does not mind

the discussion but she does not thessarily want them to be only discussion. she is about making movies. >> exactly. she wants to make movies. david: i was looking at the top 10 biggest grossing movies. not a single movie director in the mix. are we doing anything to real bad in? any of us to for say that can really change that and it is clear there needs to be some attitude checks and systemic changes. if these artists are going to make the work they deserve to make. julian, thank you so much. jillian: thank you. reminder, the latest edition of businessweek is available online and newsstands now. we were seated next week.

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