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00:00JACOB AND GENE ARE WITH US. WHEN ARTICLE SUGGESTS THAT MAYBE PRESIDENT TRUMP WILL BE BOLD AND MAKE ACTUAL EXECUTIVE ORDER ANNOUNCEMENTS TONIGHT. SHOULD WE EXPECT THAT? JACOB: I THINK WHAT HAS BEEN FORETOLD HERE IS THAT THE PRESIDENT MIGHT ATTEMPT TO DECLARE A STATE OF EMERGENCY ALONG THE SOUTHERN BORDER TO BUILD HIS BORDER WALL. THAT WOULD CREATE AN IMMEDIATE POOR CHALLENGE. IT WOULD MOVE THE DEBATE ON WORD, WHICH WOULD ALLOW CONGRESS TO GET ON WITH ITS OTHER BUSINESS AND MOVE THE ISSUE INTO THE PORTS. ON THE OTHER HAND, IT WOULD PERPETUATE THIS EXTRAORDINARY ARGUMENT THAT LED TO THE LONGEST GOVERNMENT SHUTDOWN ON RECORD. I THINK THAT IS LIKELY. I DON'T KNOW THAT IT IS A GUARANTEE. ONE GUESS IS THAT THERE WILL BE MOVEMENT TOWARDS BIPARTISANSHIP ON PRESCRIPTION DRUG PRICING. TOM: WE HAVE SEEN A CHANGED HOUSE. IT IS A HOUSE DEMOCRATIC. DO THEY SIT ON THEIR HANDS? THE BODY LANGUAGE WE ARE GOING TO SEE TONIGHT, THE PAGEANTRY, MAYBE EVEN JUSTICE GINSBURG WILL BE THERE AS ILL AS SHE IS. DID THE DEMOCRATS SIT ON THEIR HANDS OR DO THEY ARE PLOT -- APPLAU NICELYD? JACOB I EXPECT TO SEE TRADITIONAL APPLAUSE:. THEN MAYBE ONE OR TWO THAT CALLS FOR PRIORITIES AND DEMOCRATS CAN AGREE WITH. CABLE PROBABLY DO SOME OF HIS GENERAL REFERRING TO THE CHAOS AND DARKNESS AND HOARDS OF IMMIGRANTS COMING ACROSS THE BORDER. NEJRA: HOW MUCH OF WHAT THE PRESIDENT SAYS WILL ACTUALLY BE FEEDING THROUGH TO A POLITICAL STRATEGY? JACOB: I THINK A LOT OF IT WILL BE STATEMENTS AND WORDS. THIS IS A VERY RESPONSES, VERY QUICK MOVING WHITE HOUSE IN A WAY, BUT ALSO NOT ONE THAT TENDS TO FOLLOW THROUGH WITH LONG-TERM STRATEGIES. THE OFFICE OF LEGISLATIVE AFFAIRS TENDS TO FOLLOW FROM THE PRESIDENT'S INSTINCTS RATHER THAN FOLLOWING A MAIN STRATEGY TO THE EXTENT THAT THEY HAVE MADE MAJOR LEGISLATIVE PROGRESS. IT HAS COME FROM THE HOUSE AND SENATE, THE CRIMINAL JUSTICE AGREEMENTS BETWEEN THE DEMOCRATS AND REPUBLICANS. LAST YEAR, THE REPUBLICANS ONLY TAX BILL BEFORE THAT. NEJRA: HOW MUCH DO YOU EXPECT THE PRESIDENT TO FOCUS ON THE ECONOMY IN THIS SPEECH GIVEN WHERE HE IS IN THE POLLS AT THE MOMENT? JACOB: I EXPECT IT WILL BE A FAIRLY MAINSTREAM. -- MAIN THEME. THE PRESIDENT CAN POINTS TO 300,000 SOMETHING JOBS CREATED IN JANUARY. TOM: THE GO TO THE MARKETS OF PIMCO EXPERTISE AND HOW BONDS COME OVER TO EQUITIES, THIS PRESIDENT IS GOING TO BE ABLE TO DO ONCE AGAIN A VICTORY LAP ON INSTABILITY IN OCTOBER AND DECEMBER. ALL OF A SUDDEN NOW, WE HAVE OURSELVES ON THE EDGE OF A BULL MARKET AGAIN. GENE: I THINK WE TALKED A LITTLE EARLIER ABOUT POWELL, DID I THINK IT IS ALSO IMPORTANT TO NOTICE THE TRUMP-PUT. FROM THAT PERSPECTIVE, I THINK WE WILL BE LOOKING FOR SIGNS THAT HE IS DOING THE VICTORY LAP ON TRADE AHEAD OF WHAT IS LIKELY TO BE ESTIMATE WITH XI AT THE END OF THIS MONTH. SIMILARLY, THAT HE IS NOT STARTING ANOTHER ROUND TO THE SHUTDOWN. IT WOULD BE GREAT TO SEE SOMETHING ON INFRASTRUCTURE, BUT I THINK WE HAVE ALL GIVEN UP ON THE. TOM: HAVE WE GIVEN UP ON THAT? TAKEN: -- JACOB: INFRASTRUCTURE HAS BECOME ALMOST A JOKE. TOM: YOU NEED TO GO DOWN 50 NINE ST IN NEW YORK AND THEN HE WILL OFFICIALLY UNDERSTAND THAT IT IS A JOKE. JACOB: THE IDEA OF INFRASTRUCTURE BEING SOMETHING THIS CONGRESS AND PRESIDENT CAN AGREE ON HAS BECOME A RUNNING JOKE BECAUSE INFRASTRUCTURE HAS BEEN SOMETHING TOUTED BY THE WHITE HOUSE AS SOMETHING THAT WILL HAPPEN. IN PRINCIPLE, IT IS SOMETHING EVERYONE AGREES ON, BUT IN THE REALITY OF IT IN TERMS OF PRIVATE PARTNERSHIPS AND HOW THE DEMOCRATS PREFER TO INVEST

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Will Trump Declare National Emergency on Southern Border?

Jacob Parakilas, deputy head of the U.S. and Americas programme at Chatham House, discusses the outlook for President Donald Trump's State of the Union address. Gene Frieda, global strategist at Pimco, also speaks on "Bloomberg Surveillance." (Source: Bloomberg)

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