Australian officials are warning that wildfires in New South Wales could merge to create a mega-fire. They say 58 blazes are still alight in the state, with over a dozen reportedly out of control. A thick white smoke haze is now threatening Sydney. People have been warned to stay indoors and avoid exercising. A state of emergency has been declared in New South Wales since yesterday. Temperatures are expected to rise which will make firefighting more difficult. Hot and dry winds are also expected to intensify in the coming days. The bushfires that started on Thursday have caused massive damage in the Blue Mountains area. More than 200 homes have been destroyed and thousands of people forced out of their their homes. Firefighters say this is the most serious wildfire emergency in 40 years. Show Less >>