and you got a classic car, so, to me... -(nancy laughs) -...you're perfect. oh, jay, thank you so much, i'm really happy to do this. feels like a sunday drive, doesn't it? it is. it's more like a thursday drive, but close enough. (nancy, laughing) yeah! hello and welcome to strt i'm karen tso and these are your headlines. the uk ups covid alert level with prime minister boris johnson issuing a stark warning over the omicron variant. >> nobody should be in any doubt there is a wave of omicron coming i'm afraid it's clear, two doses of vaccine are not enough to give the level of protection we

need. >> wall street looks set for further gains after inflation spikes to the highest levels since 1982 but the ceo of abu dhabi's wealth fund said he's still backing america. >> i continue to have a positive bull you shall view on the u.s. market. the lira falls 14 to the dollar, with the central bank expected to cut rates further. and credit swiss overhauls the board, planning to organize the board into four divisions. we start out the day taking a look at the uk market in particular sterling, as the uk has moved to covid alert level

4, the second highest after it was warned the omicron variant is spreading higher than delta social distancing measures have been resumed and health services are bracing for a potential jump in hospitalizations. you can see how we have moved on sterling as a result, 1.3222 roughing down .75% and back around may, june trading around 1.42 so very much fallen over the months and more as we've taken impact of the variant on the economy. prime minister johnson warned of a tidal wave of infections and urged people to get booster jabs. >> our scientists are confident with a third dose, a booster dose, we can all bring our level of protection back up. i know there will be some people watching who will be asking whether omicron is less severe than previous variants and whether we really need to go

out and get that booster and the answer is, yes, we do. do not make the mistake of thinking omicron can't hurt you, can't make you and your loved ones seriously ill we've already seen hospitalizations doubling in a week in south africa and we have patients with omicron in hospital here in the uk right now. speaking to our sister channel sky news this morning, the uk health secretary emphasized the virulence of the omicron variant. >> it is spreading at a phenomenal rate, something we've never seen before, it's doubling every two to three days in infections, that means we're facing a tidal wave of infection. we're in a race between the vaccine and the virus. we know two doses of the vaccine are not enough but three doses provide excellent protection against symptomatic infection.

that's why the booster program is more important than ever. >> markets are trying to piece together the impact of the variants as well as unusunumber we're getting globally the market managed to pile on some gains, particularly europe before a wobble later in the week we saw strong gains thanks to how quickly markets climbed at the start of the week, the dax up 3% despite falling three straight sessions into friday, and the french market up 3.3%, despite a similar pattern, the three sessions from midweek last week as we are opening up for trade across the morning session, we're holding some green, moving in a positive fashion and just adding to some of the recent gains we witnessed over the course of last week. the handover from wall street was stronger, we had the inflation number that was red hot as anticipated

but we did see fresh records on the s&p. let's look elsewhere across the various sectors you can see what's supported across the market the ftse 100 a modest move into the green. you can see how uneven these markets are. 7300 here. the .2 matched by a third much higher on the french market. the dax, almost .9% that is a strong indication out of the german stock market. italy .7, a modest .4% on the spanish market but only a slight .1 on the smi. you can see the markets are moving stronger. let's move into the sectors. you can see where some of the strength is coming from. at the top we have gains of more than 1% of auto, technology and basic resources. but some patches of weakness around health care and real

estate stocks this morning and the foreign exchange markets we've been watching the lira for a number of weeks now and we've seen the market take fright over the extraordinary policies by president erdogan in turkey and how any independence has fallen by the wayside the market is setting itself up for a 100 bases point move this week a cut to policy despite the fact you have high inflation, plus 20-odd percent, the market is looking at the unorthodox measures and saying that's worth driving the lira lower we have now, as you can see, moved beyond the 14 level to the dollar it's picked up a little bit of the territory but still a weaker trade. dollar supported across the board versus the japanese yen. getting traction against other currencies as well and that should be no surprise given what we saw on the inflation numbers friday

the ceo of the uae's investment company is not too worried about inflation in the long run speaking to cnbc's hadley gamble, he said current price pressures are not affecting his strategy. >> when you're a long-term investor like us, i think these challenges, interest rates, inflation, cycles, energy cycles, semiconductor cycles, they come with the territory we're designed to -- >> you think it's transitory, the inflation? >> it's absolutely transitory. i continue to have a bullish view on the u.s. market. >> we have news crossing now around the variant, oxford university has just released some comments saying vaccine shown to induce lower levels of

neutralizing antibodies against the omicron variant. we've been waiting for an update from oxford university, they are saying increasing vaccine uptake among unvaccinated, encouraging third doses, priority to reduce transmission levels, potential for severe disease strong warnings here as researchers from new samples and study participants who got two doses of standard covid-19 shots for neutralization using omicron virus isolate the same blood samples from individuals who had previously received two doses of the astrazeneca or pfizer vaccines were used saying the preprint results omicron has potential to drive further wave of infections, including among those already vaccinated this is fascinating. we had already heard from pfizer but not that much from astrazeneca. so this information is giving similar lines to what we heard

from pfizer the other week, that a third dose is necessary, that it is going to have an impact here because two doses may not be enough to lower the chance of catching this variant. so i think that's quite instrumental as we've seen fresh measures announced here over the weekend to deal with the variant. i'm going to take you to the big number that the street is focused on friday, that is u.s. inflation, surging at its highest annual rate in almost 40 years, hitting 6.8% and ramping up pressure on the fed to lift sooner than later. with gasoline prices up 60%. auto, food and shelter costs contributed to the highest inflation rise since 1982. the white house's director of the economics council said the

government is not too concerned with the year on year surge in cpi but adding how it is looking to ease the burden. >> prices are high and we are very focused on that issue we're focussed on the month-to-month movements because compared to a year ago, comparing to an economy that was in shutdown. in november we saw easing from the prior month. under the headline, half of that was driven by energy and cars. those are areas we've seen some easing in the weeks since, notably on energy we're seeing gas prices down a bit nationally, natural gas prices down 25% from november so that is something to take note of. but we here are very focused on what more we can do to try to address the price issues that americans are facing >> randall joins us now, former federal reserve governor nice to have you back with us. it's a number the market is trying to digest, the 6.8 level

that we all thought would cross in that raunge, it did. is the market perhaps we're through the worst of it we'll see a falling of prices from here are you as concerned after the number crossed or do you think we're now looking at a major threat from inflation? >> i think we have to take this very seriously we haven't seen inflation numbers like this for decades in the u.s. or in most major countries around the world and it's not just that we have particular inflation pressures from supply chains or auto or energy but we have the threat to inflation expectations because if people expect inflation to be rising, they're going to be asking for higher wages, firms feel they can pass those along we can get into a situation we had a few decades ago where inflation keeps going on. >> are there good aspects to that conversation? there's a feeling low end wages

have beenly on for too long and corporates have been cleaning up on the margins and that's going to shareholders. is it bad if we see some wage pressure at the lower end of the economy? >> the real issue is real wages, inflation adjusted wages wages have been rising rapidly but inflation is rising faster that's a problem because the real purchasing power, the amount of goods and services they can buy, even though they're increased, haven't increased enough also important to note, the u.s. is a bit of an outlieuer on thi. u.s. inflation has been much higher than other countries, i think that's because of a fiscal push there, much bigger than other countries. >> we know the central bank game has been highly politicized in recent years despite joe biden

trying to take some of the heat out of this with the reappointment of jay powell. but we're thinking m taking some of the extraordinary stimulus away may be useful trying to tame inflation and not hurt real incomes. what do you think of the political push state side, do you think there's enough movement for the push for the policy >> i hope there should be. i hope senator manchin holds the line on this we've spent on the order of almost 50% of gdp, including some of the current plans since last march now the initial response of 15% of gdp, that happened a lot around the world i think that was perfectly reasonable because of the great uncertainty, but the u.s. keeps spending and spending and spending i think that's putting too much pressure on the economy and we should take a step back for a little bit to assess where the inflation pressure is coming

from is it something that's global, outside of the u.s., al thoi i think a lot of it is inside the u.s. >> they're running an interesting piece on what happened under volker, there were costs to what they did to control the inflation, we saw manufacturing go offshore, a crisis in latin america, those heavily in debt could not repay them could there be similar consequences today if we saw a central bank move to quickly >> sure. because one of the things you worry about is that the central bank says it's transitory, it's fine, and suddenly it's not fine, the markets lose confidence, these things happen quickly, they're very hard to predict, and then interest rates start to move up rapidly, given the amount of debt that's outstanding now in response to the crisis, both government and

private sector debt, that could be tough leading to a strong contraction. so central bank should be wary of that and i think the fed this week is likely to start to taper more rapidly and i think that's important they do. >> are you seeing signs of stress out there, or do you have concerns that are different this time around? we have this unorthodox policy coming out of turkey, you can see the canary in the coal mine in some markets we have economies where there's not been a roll out with vaccines that have been left behind as we talk about the ability to recover on the back of the pandemic how do you sum up some of the k key risks you're seeing out there? >> i think major economy too slow to dealing with the inflation threat and leading to a rapid rise of rates to try to deal with it, but too much too late or maybe too little too late that's problematic we also have a lot of

uncertainty around the new variant and potentially new variants coming out, both in terms of the health consequences and the policy consequences. it's conceivable we'll see more lockdowns again. that obviously would be extremely problematic for the economy and something that central banks can't do anything about. if people can't go to work, buy things, no matter how much stimulus there is it's not going to make a difference. >> if we put this together in terms of the time line for the fed, the market saying we're likely to get the taper sped up by march, and one interest rate hike in 2022, what do you anticipate for the fed, is that the course or what should they do >> speed the taper and the additional asset purchases by the first quarter of next year and that sets them up for interest rate increases. i think it's likely they'll do more than one. that makes sense for them to be

gradually moving rates up, sooner rather than later, rather than being forced by the markets to have a strong movement up for people with a lot of debt outstanding. >> you're here in london and we've heard the emergency measures announced over the weekend. we lifted the covid alert level. we know the service economy has been hard hit in many places, particularly london. do you think the bank of england is going to raise rates soon >> it's interesting. they seem to be on a path to raising rates and then lose their nerve a little bit and now they're concerned about the policy measures in response to the variant, slowing the economy down, so they're probably going to defer a little bit. but that's challenging because inflation is rising. the supply bat f bottlenecks are here also, whether it's on the labor side or the broader global side there's also been a fair amount of fiscal stimulus

they have to be sure to make sure inflation expectations don't get out of control here just as in the u.s. >> randy, thank you for joining us today g-7 finance ministers will hold a meeting today inflation has surged in recent months the latest reading is coming in at h4.9% and 4.2%. as they review support measures as the omicron variant hangs over their head. the fed will discuss the taper plans later in the week they'll review the asset purchases plan and the bank of japan and swiss and turkish central banks will also debate rates and monetary policy in the days ahead festive cheer from the central banks is what we're talking about.

the turkish lira has hit lows. as president erdogan doubles down on policies credit swiss has done an overhaul of its lending board. the ceo of europe, middle east and africa the head of the lender's bank division will now lead the america's division this as the bank continues its restructuring program amid heavy losses and scandals. it also said there's an investigation of the covid rules. 68 million euros after withdrawing his job in 2018.

the spanish bank was directed to pay a sign on bonus. he's been running the italian lender since april, saying he hoped this decision would close the matter so, quote, we can all turn the page. >> we'll squeeze in a quick break. but coming up the new german chancellor meets with the polish prime minister for the first time against a backdrop of differences. the latest right after the break.

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president biden is sit to hold more talks with his russian counter part as tensions rise over a buildup of russian troops on the ukrainian border. biden has warned that russia will pay a terrible price if it invades ukraine. in response putin wants guarantees that nato will not respond further to the east. the conversation dominated conversation at the g7 meeting in liverpool over the weekend. where russia was accused of

trying to undermined liberty. >> we've seen a united front from the g7 that there would be massive consequences if there were to be a russian incursion into ukraine which would carry severe costs we are aligned with our partners on that the most important thing is we defend and advance freedom and democracy. that is the main topic of discussion at the g7 this weekend. we cannot have short term economic gain at the expense of our long-term freedom and democracy. >> speaking to nbc's "meet the press," u.s. secretary of state antony brinken pointed out the importance of the pipeline with russia. >> that pipeline doesn't have any gas flowing through it right now. it's a source of leverage on russia, to the extent president putin wants to see gas flowing

through that pipeline, if and when it becomes operational, it's hard to see that happening if russia has renewed aggression on ukraine, if it takes renewed action so i think president putin has to factor that in too as he's thinking about what he's going to do next. >> the german chancellor has met with the polish prime minister to develop ties between the nations. let's get out to annette for more we know poland has been in the cross hairs with europe over the rule of law and we know we've had concerns from the polish about the escalating tensions here, do you think we can see a break through in coming weeks before christmas >> do you mean a break through regarding the rule of law, i don't think so i think that will take into the next year. when it comes to nordstream 2

the same holds here, the u.s. is calling on germany to use the project as leverage or token in the confrontation with russia. olaf scholz, the new chancellor of germany has refrained to do so we listened in on what he had to say about the situation and where he stands when it comes to the escalation at the border between ukraine and russia >> translator: we're watching the troop movements along the ukraine border with great concern. we're making it clear the borders cannot be violated and we consider the integrity of borders to be inviable and no one can think they can be violated without serious consequences >> as i was saying, olaf scholz is still restraining from using nordstream 2 as a political

leverage in the discussions with russia he most likely will follow an old policy approach by the spd towards russia and eastern europe, which is based, a, on dialogue and if dialogue doesn't work we could go down the road of sanctions but first of all i think he wants to start a dialogue and have a proper relationship building exercise with vladimir putin. if that's going to work, remains to be seen but he's incsisting n an international response, not a germany go it alone sort of thing. i think the coming weeks will show how much interest is there also from the side of the russians to test how europe is nowadays with the absence of angela merkel who was very influential in brokering relations with the russians it remains to be seen

as of now it seems nordstream 2 is not off the table and could start operations by summer but a decision on that sits with the court because that's what the new foreign minister was saying yesterday, as it stands now, as the organization is set up, nord stream 2 cannot go operational because it's modelled to european energy law. >> appreciate the detail there thank you very much. coming up supply chain crunches hitting the wallets this holiday season we'll bring you that story right after the break.

hello and welcome to "street signs," if you are just joining us, i'm karen tso and these are your headlines sterling under pressure as the uk ups the covid alert level prime minister boris johnson issuing a stark warning over the omicron variant. >> no one should be in any doubt there is a tidal wave of omicron coming and i'm afraid it is now clear that two doses of vaccine are

simply not enough togive the level of protection we all need. >> oxford university warns a double jab from astrazeneca or pfizer vaccine induces lower antibody levels against omicron as the case for boosters grows s wall street looks set for further gain after inflations sp spike. >> i take a longer view on the united states and continue to have a positive bullish view on the u.s. market. and turkey's lira hits an all-time low falling below 14 to the dollar the central bank expected to cut rates further at this week's meeting. we are watching a stronger session play out in europe this

morning, snapping what has been into the end of last week, that said it was a strong trading environment the start of the week last week we did bank some gains before the week before the wobble set in, we are now trying to recapture some of the green, one of the stronger markets, germany, that is the stand out versus slight gains. where the last 48 hours have been dominated by the handling of covid as the variant starts to have a dominant impact on infections here in the uk. germany saw a 1 plus percent to the upside half a percent on the french side and .8% on the italian. we saw a gain last week of 3.3% on the french markets. want to go to foreign exchange ratings. dollar is king again, the 6.8% inflation rate that crossed

friday's session has put back into the short end yooelds one of the ones we're watching closely is the lira, as the market is set for more cuts. and a quick look at what's in store later today state side you can see we are watching positive numbers at this stage right across the board, one of the positive catalysts for the market has been the record level we finished at the s&p 500 on friday, the inflation numbers very much judged by some participants as being review mirror and that sentencing for this market as one looks for further gains. >> a ceo has said he is bullish on prospects for the chip industry despite current supply shortages. speaking exclusively to cnbc he doubled down on the investment

company's position in global semiconductor manufacturer global foundries. >> we lived through that journey. when we entered the business in '07, it was investing in a company which we thought was going to be a company that will be very successful that had a differentiated technology, but was at that point doing two different things, the design side and manufacturing side of it i think the view we took back then was that the manufacturing side needs to be spun off. because achieving scale and being able to compete on a global platform required it to essential service many customers. so turning from ans a p aspect a business with a&d, serving one customer, it led to a global foundries. you think that was the first

very important decision point back in '07. amd back then was small, an interesting prospect we had a very, i would say, strong view about the semiconductor business, technology or wherever it was going. and i think we made a big bet on amd and over the years amd, you know the story, has been an incredible success its ceo, lisa, has been one of the most incredible ceos i think in the sector, well, to be honest, in business overall, really phenomenal ceo and we've seen amd now become the player we were always hoping for back in '07 >> in terms of that growth and the need, supply meeting demand, what's your outlook? because you have a bird's eye view on this at this point >> so it took 50 years for the semiconductor business to turn into a half a trillion dollar business it's going to take probably

eight to ten years to double it's going to double right after that in probably four to five years. >> yep >> so you take that, as one very important data point you combine that with another very relevant data point, there's only five players. there's five foundry businesses -- global foundry businesses four of which are in asia. one of which, global foundries, has i think the unique differentiated platform of being in the united states, in europe, and in asia. >> local authorities in china's eastern province are clamping down on a new virus outbreak official numbers on monday showed 173 confirmed cases in the province between the 6th of december and the 12th compared to one case in october more than a dozen local companies have suspended operations as health authorities look to stamp out the cluster.

the omicron variant looks to worsen supply shortages. the shipping costs are likely to boost global prices by an additional 1.5%. well, cnbc.com sam sheed joins us with more we are hoping that things were getting better not worse give us a sense of what's crossing >> so the supply chain issue at the moment is quite bad still in a lot of areas especially when it comes to semiconductors and chips, there simply aren't enough chips to go around and that means a lot of products are unavailable this christmas. i've done a piece for the website all about how santa isn't going to be able to deliver the ps 5, the x box series s, and the kind of supply chain will hopefully resolve itself by the middle of next year but we'll see

>> sam, you and i both were to web summit recently in portugal with a ton of technology insiders i did speak to some of them, saying do you think this is going away i don't have an electric vehicle yet, i don't have connected devices in the home. so potentially he's right, potentially we don't know the demand story what do you make of that a huge change we're seeing in terms of the technology with 5g and more connected devices it could mean we see it go on for much, much longer than people anticipate. >> you're right. there's chips in everything. not just one or two, often dozens or hundredso of chips in products so we're putting semiconductors in an increasing number of items and the manufacturers can't keep up they take orders several months in advance and they're already

oe operating at capacity. if someone says we need more chips now, they can't do it. they have to plan ahead. it's hard to see the semiconductor crunch going away. i think it's going to continue for at least another year, possibly two years and who knows beyond that. >> short term, we know a lot of people have had their eye on holt devices, that's typical this time of year. yet there was also the impact where the pandemic brought forward a lot of the demand story. what does this year look like in context? >> well, it's kind of hard to say. you know, some products, including cars, have been particularly badly hit if you're after a car for christmas, you can expect to have less features in there. no up-to-date sat nav and some cars are having parking sensors removed. all in all it's still quite bleak and quite bad for the consumer right now and also prices have been passed

on to the consumer too so the price of chips has gone up 20 to 30%, so those price increases are passed to shoppers and products will ultimately get more expensive. >> great news for the investor but not necessarily the consumer this christmas. >> for more, you can head to cnbc.com to check out sam's article. moody's outlook remains stable even as inflation and supply chain woes mount. however some firms will see their bottom lines hit david you heard our conversation there between myself and sam weigh in on the conversation we're having about the supply chain pressures as you see it. >> yeah. it's obviously a topic that's getting a lot of coverage at the moment and understandably so with those challenges also caused delays in shipments from

the far east i guess taking a bit of a bigger picture view, though, this isn't necessarily a bad thing for the retailers in those badly affected segments by delays, but think about electronic retailers with margins you make on those gaming consoles are pretty low anyway you think about car retailers, still delays, but what that means is that the prices of second-hand cars is actually boosted, which again helps the margins of those retails so i mean, overall, yeah the kind of supply chain challenges remain a threat to profitability. but ultimately, in those segments, but ultimately when it comes to looking at the sector outlook, we're looking at the far broader segments, all the segments of retail from food to nonessential products as well.

and trying to think about the underlying credit fundamentals for the next 12 to 18 months clearly the pandemic has been a tough and volatile time with many challenges, but as i say, people, grocers, discounters, online specialists, they've all done well in these last 18 months or so as demand has been very robust for their products as consumers can't go and do things they odd rdinarily might like to do and things that have been hit by lockdown closures, those are coming back strongly as pent up demand has been released >> you mentioned the discounters there. last time around with the financial crisis, those discounters were strong in the marketplace because of the trading down by hard hit consumers. this time around it feels like with very thin margins as soon as they get cross pressure it's

detrimental to the business, holding the line on $1, 1 pound pricing is difficult when you're seeing escalation on every area of the business. do you take a dim view of some of the budget operators in the space this time around >> in europe, i guess the big companies that we have ratings for don't tend to have that con aust constraint of the dollar price point thinking of b&m, doing remarkably well in the uk in particular, there's also action on the continent, and these companies have an array -- i think a privately owned company doing well, companies like the range in the uk together are doing very well. and i they do well because they have this sort of treasure hunt type of offering, which consumers love they're getting a bargain, it's

not necessarily a pound, but it could be very different price points indeed. but there have been flexible with their offering. that's the key of the success of the likes of being in action that we've seen have improving credit quality over the last several years. >> we've got to talk about the new variant. if you've been around london -- central london in recent weeks, it feels as though things are back to normal, stores are busy, incredible foot fall and clearly concerns about the effectiveness of two doses of the vaccine across the population that's been double dosed. are you concerned the normalizing will snap back to a range we've seen before in the height of some of the concerns. >> foot fall is such an interesting statistic to look at but also confusing. foot fall levels are still somewhat muted, well down on

pre-pandemic levels. and it varies by location. places like high streets are suffering in particular, and, in fact, the city centers, all be it you might feel like they've been getting back towards normal, they still boil down on what people would have been seeing prepandemic the winning part, in terms of bricks and mortar foot fall is retail parks where people can go under their own steam in their own car and go in and out of quite large units without feeling that they're constrained and getting too close to others. but i think, you know, in that medium term prospect, underpinning our stable outlook is that we expect things to gradually normalize, obviously down side risk as you mentioned in terms of foot fall but the other point make it about

central london foot fall looking quite strong i think people have been inclined to shop early for christmas this year, more so than ever, because of those concerns about the way things might play out in the weeks ahead. so overall, i don't necessarily feel that it's going to be a bad picture for retailers with national presence. city centers are going to find it relatively tough in the next couple of weeks but you think they've had it quite acceptable these last few >> could we talk about some of the other markets across europe, i was in paris and had a good feel about it, but that was before the height of the variant concerns coming to the headlines. what do you make of how some of the markets are positioned from france, germany, the netherlands where we're seeing stronger restrictions as well.

>> yeah. of course this sort of short term volatility is relevant to the markets, we're a credit rating agency and our outlook covers rather more medium term approach, 12 to 18 months. so we're expecting, you know, absent prolonged social restrictions on shopping, absent a lockdown, we're expecting the prospect's retailers to be pretty strong, robust food is going to continue to benefit from the fact that systematically we're eating more at home than we were pre-pandemic by the same token, clothing retailers are coming back from a tough time when they had periods they were forced to be closed, prolonged periods over the course of the last year. so as i say, going forward, i'm not going to say it's a

full-blown tail wind there will be difficulties, bumps, but for retailers that have adapted their offering to the changing environment, i think the prospects can be set reasonably fair. >> david thank you very much for joining us for such a comprehensive view of the sector david beeter, vice president of moody's p. the hong kong listing has been shelved after it was placed on an investment blacklist over alleged human rights abuses. the group said they're rejecting what they called unfounded reports. >> sense time has postponed its i.p.o. making an announcement saying it will publish a supplemental perspective which will update the listing

time timetable. they remain committed to completing the global offering all subscription moneys will be released to investors in full. they failed to price their shares last week the latest developments come after the u.s. treasury department last friday placed them on an investment blacklist. the chinese military industrial complex companies list over alleged human right abuses this prohibits the purchase or sales by any investor. so it would directly affect silver lake and fidelity sense time issued a statement on saturday saying we oppose the designation and accusations made in connection with it. the accusations are unfound and reflect a fundamental misperception of our company we regret to have been caught in the middle of geopolitical tensions and will take appropriate actions to protect

the interest of our company and stakeholders i'm emily tan in hong kong back to you. coming up on the show, rescue efforts continue in kentucky with a desperate search for survivor's after the state's deadly tornado on record we're live on the ground just ahead.

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to a developing story in the southeastern states of the united states. where a desperate search for survivors is under way after a string of deadly tornados killed dozens of people president biden declared the situation a federal emergency unleashing millions of dollars of aid after thousands face housing, food, water and power shortages. let's get out to nbc's jay gray who joins us live from mayfield, kentucky it's grim when you read about the reports and one person saying nothing standing in the direct line of a tornado is still standing now walk us through what you're witnessing there live on the ground

>> reporter: yeah, karen i will and give you a first-hand look at the pocket of devastation here it's overwhelming one tree pulled from its roots, another that was snapped and thrown onto what is a house behind all this, pieces of the roof underneath amid the other debris. even a truck moved into this back yard and this type of devastation, destruction, it stretches for miles here in mayfield and really across the strike zone in five states. more than three dozen tornados responsible for a deadly attack. we're now three days in and know at this point there are at least 40 confirmed victims from the storm. 40 people who died but officials fear that number is going to climb and could climb dramatically as the search and rescue you talk about continues around the clock teams sifting through areas like this filled with rubble, trying to find anyone they can that may

still be alive and, of course, looking for all of those who are still missing. and they have vowed that they will continue their work around the clock until everyone is identified that's a process that's likely going to take at least several days here, because of trying to get through all of this. and, karen, i can tell you that when it's said and done, officials fear that the search effort could reveal as many as 100 lives lost in the storm. so this is an overwhelming tragedy that so many are dealing with across five states right now and will be for quite some time it's going to take a long time to come back from this. >> incredibly heartbreaking. thank you for bringing us an update we're going to wp rathe show thank you for joining us "worldwide exchange" is up next.

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