>> welcome to "lunch money." i am adam johnson. motors hitting the brakes. carmakers slowed down in december. phone versus plastic. which wins the security test? boeing -- crucial vote today over where it is going to make its next big jetty the 777. i hope you already brought your new york apartment. professional bull riders are coming right here to new york city. first up, the snow and lots of it. plenty of subzero windchill. hundreds of canceled flights.

winter storm smacking the northeast. huge delays at chicago o'hare. almost two feet of snow fell in boston. western new york saw about a foot in the half of the white at this point, more may be on its way out, but does that mean we are in the clear? >> i'd like to say it is moving away from whoever is impacted by it, but importantly, the storm is still impacting so many people because we are getting the rain, wind, and snow across much of the ease but bitterly cold wind chill. it is so cold it is -15 in some areas, -20 and others. you can see the wind off to the coast. that in the blue. dangerous windchill will continue. >> brutal temperatures making it very hard for people who have to

work outside. who is most at risk? >> i wrote about it in my book, there are a lot of common injuries that happened during cold and snowy conditions. one of them is for men over 40 shoveling snow. we have a graphic to show you with some of the weather injuries that are common. typically, we see most of them occur in motor vehicle accidents or being caught outside off guard. not all of them are while shoveling snow, but it does happen. >> men over 40 should just stay home. >> sorry, dear, i can't recommend -- shovel snow. >> just don't over exert yourself. >> this has transferred into a counseling, stay-at-home segment. >> where is dr. phil? >> the nfl is threatening the local market blackout since those playoff games have not sold out. arctic temperatures not helping ticket sales. >> many of the games will be played in bitter cold. only a handful in the history of nfl have been played in below zero. you probably find it hard to believe. we have outside games where temperatures are going to be much colder. you can see some of them here.

>> people are concerned we are going to have the coldest ever. -- super bowl ever. >> a big travel weekend as people return or attempt to return home after traveling over the holidays. we are likely going to see ripple effects from the delays that can last well into the weekend. we spoke with the chief operating officer at jetblue and asking him about the impact of the storm. >> this is very much a return travel period for a lot of vacation travel, so i think we will get people home, it will just take a little while longer meaning a couple of days longer, but we will definitely get them home. it usually takes us about a week to roll up the information. it is good to be with you guys. >> tell us that what point did jetblue make the decision that it was a better course of action

to cancel flights then run the risk of extended delays that could cost the company money and also, clearly, damage its relationship with customers? >> great question. we made our decision wednesday night to take the operation down roughly about 7:00 in the evening last night in the northeast, and that ranges all the way from portland, maine to the greater new york area. but we will see more cancellations today because even here in new york, we weren't expecting jfk airport to be closed as long as it was this morning. we are expecting it to open in the next hour or so. as soon as it does, we will begin limited operations but it will probably take us two days to reset an operation is large. we ask our customers to be as patient as they can. check jetblue.com as often as they can. we will eventually get everyone back to where they need to be. >> do you think jfk was overly cautious? >> no, i think they had a tremendous amount of wind happening in the airport field

and with snow this light and the amount they got, i think like 10.5 inches, they have a really hard time seeing visibility-wise for the snow removal equipment to get out there. >> meanwhile, how bad are the temperatures? >> you might think, how cold is -20 or -30? the current windchill, looking at the average surface temperature of mars, that is -67. the lowest temperature ever recorded on earth, -135.8. the coldest we could ever imagine you can see here. >> somebody else who wants to put this cold into context, a resident canadian erik schatzker is more than just a little lot say on this. >> it was colder in winnipeg than it was on the surface of mars. this morning i was thinking, how cold is it in northern ontario? and here we are --

>> the booming metropolis. how many people live there? >> look, it is inhabited by humanity and it is -40. >> once you get past -15, you get into the real danger zone. >> i can guarantee you the folks are not prancing around naked in the snow. >> they know better. >> i get it. it is not as cold as canada, but still pretty darn cold for new york. "surveillance" team took notice of some of these people in the cold and try to help a driver who had his camaro with no snow tires on the streets of manhattan. >> there is snow outside world headquarters. >> that camaro ain't going nowhere. >> the storm of the century for the guy in the yellow camaro. we have been monitoring this all morning. it is still there.

let's catch up with the "surveillance" camaro. we got some movement. >> who parks a camaro on 3rd avenue in the middle of the storm and expects to get it out in the morning? come on. >> that is the celebration. >> the camaro has not moved. there is tom in his yellow camaro who has been out there since 3:00 a.m. on 3rd avenue and 57th street. he tried to get assistance from a tow truck and they still can't move the beast. >> in fact, they put it in the middle of the road. >> salt trick on the back tires. does that work? >> no.

>> continuing "surveillance" coverage of tom in the yellow camaro. part of our crack team out early in the morning. the profanity has been deleted. this is on 57th street and 3rd full disclosure, after "bloomberg surveillance" our entire tv crew will exit out into the street, all of them will get behind the camaro and push that puppy to freedom. >> good morning. ♪

>> they did it. all of this bad weather, bad for car sales. we will add up the december slowdown, next. the end of the year was actually very different for the manhattan real estate. condo boom. that is later. ♪

>> this is "lunch money." on bloomberg television. we are also streaming live. auto sales day in december was a disappointing month for the automakers. chrysler, sales were up but felt short of the estimates. italian chrysler has logged sales gains for 45 months in a row. fiat now owns 100% of chrysler. ford missed the december sales estimates as u.s.-like vehicle sales rose just 1.7% compared to forecast of 4.3%. worst of all, gm reporting december u.s. light vehicle sales

down 6.3%. what about toyota? >> really disappointing across the board and not just for detroit, but toyota as well. both general motors and toyota saw declines. their sales fell month over month. >> we haven't seen that for a while. >> we haven't seen a prolonged a long time. you know what they're siding -- citing, cold weather. ford missed the estimate. chrysler missed the estimate. gm and toyota as well. there are still superlatives for these carmakers. they're having record months for certain models. ford had a record month for the fusion. the best selling month for the fusion of all time. general motors had a record month for the corvette, the best month for the corvette since 2006.

not a car, but the corvette, the gm doing quite well. they did not miss by little, they missed by a lot. a drop of more than 6%. we were looking for a gain of 1.5%. the biggest miss of all four so far. >> in contrast to the u.s. automakers. >> german car sales rose for the month of december. anyone who follows the auto industry knows europe is in the biggest slump it has been in in two decades. so when german car sales rise and here in the u.s. where we have a very healthy and strong auto sales market, we see a drop -- >> daimlerchrysler? >> ford and gm keep their prices above the industry average. chrysler right at the industry average. if you take a look at a graph of

what gm has done with its prices as opposed to what dime x chrysler has done, they go in opposite directions. here you see gm in yellow, prices climbing, climbing, climbing. and daimler, the big luxury maker of mercedes, lowering significantly. >> and they also brought out cheaper models. >> they're really getting that entry-level luxury market. german carmakers across the board are lowering their prices. u.s. companies are raising prices. maybe that will have to change because we're looking at so much inventory on the lot's of u.s. carmakers right now. seasonably, it is a slow time. you don't go out and buy a car in january because it is cold outside. maybe we will see a reversal. maybe we will see these companies have to come back on their prices, although, they

definitely don't want to. >> land rover also having a tough day. some of the 2013-2014 vehicles are being recalled due to potentially faulty side airbags. if you have a mercedes -- there are a ton of options. the sedan comes in five different sizes. why so many models? sam grobart looks at why luxury cars are multiplying. >> with the release of its new sedan, mercedes-benz now sells them about my count, 13 different cars here in the u.s. everything from the entry luxury four-door at $30,000 all the way up to the $215,000 cl65 amg coup. audi and bmw have been going at it like rabbits, too. why do automakers need to send -- sell 10 when 3 or 4 used to be fine?

there is much more competition in the 1980's. you have lexus, infiniti, accurate, -- acura. you have to find as many new customers as you can with that competition meaning cutting up the competition into thinner slices, which now you can do given the massive amounts of data that automakers have to analyze the market and identify new subgroups of consumers. and thanks again to technology, now it is easier than ever for carmaker to spin off different models using the same set of parts. things like the chassis, engines, and other components can be shared so each model does require you to start from scratch. it changes the math carmakers use. if in the olden days you had to sell 100,000 cars of a given model to break even, now you can sell three different models at 30,000 cars each. now that there are pitfalls.

sometimes a carmaker think there's a new market for a car when there really isn't. several automakers have some very curious offerings of late as well. there are some clever things you can do with platforms, but it doesn't always mean you should. >> from cars to planes, the next big thing in long-haul jets faces a very big test today and boeing is putting it to a vote. a target bull's-eye. circling the wagon over the data breach. we have two voices who say worry not about your own digital security. russian president vladimir putin is not afraid of the snow. he hit the slopes in sochi where the winter olympics begin in just a few weeks. he made a few runs so sochi is safe following those two deadly bombings earlier this week. he will also inspect some of the olympic venues for the opening ceremony. all right, give it your best. ♪

>> in shops, send in the calvary. target faces at least 40 lawsuits related to their breach of 40 million credit cards and debit cards. the throng of lawyers behind the suit seeking class-action status. it was only a matter of time. seriously, how big of a deal is this? >> putting data out there, but so what? it is very well protected. it is not a big deal. i have a target card and i shop

there and i check my account has not been compromised. the card companies and the bangs -- banks cover that if it is. it is not that big of a deal. >> that was a cofounder of square which makes that white square box that plugs in a smartphones of people can pay with their credit card and not stand in line. he thinks this is no big deal. if that doesn't sit well with you, how about a second opinion? >> everyone should be worried, but the good news is that the security situation, despite the headlines -- >> despite target and all that -- >> the security on the web and on your mobile phone is getting nothing but better. >> that was the former ceo of paypal. he knows his stuff when it comes to paying electronically or even by plastic. the future is a digital wallet, but is plastic going anywhere? >> plastic is not gone. plastic will be with us for a long time. however, the thing we need to do and everybody wants is the ability to do what you do with plastic, but just by holding your phone. >> ok, hold my phone and it is like my big bank debit card or credit card.

>> why should you have to swipe a piece of plastic? the phone has higher security. >> you got my attention with that because i've been one of the people victimized by that. what is the pushback on this? visa and mastercard, are they behind the digital wallet? >> not really because it threatens their hedge money. the people who are really going to drive the digital wallet are the people who have the customer relationships already. so it is going to be apple, google, amazon. >> i go to stores and i'm checking out on the floor, apple is doing that, and i assume we're doing that in 2014, what is the new new to look for in the digital and what i do with my wallet? >> it is not here yet and i'm not sure we will hear it -- see by the end of the year, but probably speaking, the ability for your phone to connect to the point of sale machine right on

the storefront. the ability to say, rather than reaching for the plastic, boom, here's the phone and that is all you need. >> what did you learn over the holiday season with the incredible rush with plastic. department stores were up 89% in their online sites. how does traditional brick-and- mortar, do they need my digital wallet if there is going to be no traditional brick-and-mortar? >> there will be traditional brick-and-mortar for a long time. still, electronic commerce, although growing like crazy, still tiny compared to physical commerce. but if you look at the trends, physical retail, flat to down. online commerce, up 40% over the last year. mobile commerce, up 100%. >> more from bill harris and square cofounder on

bloomberg.com/tv or go to our tablet app. coming up, a big day for boeing and washington state commerce. a credit downgrade for the whole state. the rodeo coming to manhattan. that is later in sports. ♪