La Caisse trims Cogeco stake; markets digest Trump tariffs

La Caisse to partially exit Cogeco while remaining largest shareholder

La Caisse, formerly Caisse de dépôt et placement du Québec, has announced plans to sell a block of Cogeco Communications shares representing nearly 11% of the cable and telecom firm’s issued and outstanding subordinate voting shares. The shares will be sold at a gross price of $67.45 per share, raising about $229 million in gross proceeds. Despite the sale, La Caisse said it will remain the largest holder of Cogeco Communications’ subordinate shares.

The transaction is tied to La Caisse’s periodic portfolio rebalancing rather than a strategic exit, according to the institution. Kim Thomassin, Executive Vice-President and Head of Québec, said La Caisse “continues to firmly believe” in Cogeco’s potential, pointing to its participation in several major transactions with the company. These include a $350 million block purchase of shares in 2023 and earlier support for Cogeco’s 2017 acquisition of MetroCast cable systems in the United States.

La Caisse first became involved with Cogeco Communications in 2013 through a $50 million loan. Cogeco today provides internet, mobile, TV and home phone services to 1.6 million residential and business customers in Canada and the United States. La Caisse said the capital freed by this latest sale will be redeployed into Québec companies “to support and accelerate their growth,” aligning with its dual mandate to generate long-term returns and contribute to Québec’s economic development.

Trump targets South Korean imports with proposed tariff hike

In Washington, President Donald Trump said he would increase U.S. tariffs on a range of South Korean imports tied to autos, lumber and pharmaceuticals from 15% to 25%. In a social media post, Trump accused South Korea’s legislature of “not living up” to its trade agreement with the United States, citing delays in enacting a framework that had lowered U.S. tariffs on many Korean exports to 15%.

The move comes as Seoul has struggled to roll out a planned $350 billion investment package in U.S. strategic sectors. South Korea’s finance minister recently said that investment, which includes up to $200 billion in cash over phased annual installments capped at $20 billion, was unlikely to begin in the first half of 2026 due to pressure on the won. The currency has fallen to levels not seen since the 2007–2009 global financial crisis, fueling concerns over capital outflows.

Trump has repeatedly used tariffs as leverage in foreign policy during his second term, and some previously threatened hikes have been delayed or not fully implemented. The latest action faces both economic scrutiny and legal testing, including an ongoing case at the U.S. Supreme Court. Commenting on the South Korea move, Josh Lipsky of the Atlantic Council said the decision reflected impatience with the pace of Seoul’s enactment of the framework agreement and called it a reminder that expectations of tariff stability in 2026 had been misplaced.

Bond market reaction reinforces ‘TACO trade’ narrative

Recent market volatility around White House tariff signals has revived discussion of the so‑called “TACO trade” – shorthand for “Trump Always Chickens Out” – describing how asset prices often sell off on aggressive policy threats and recover when they are scaled back. After Trump floated new tariffs tied to opposition to his Greenland annexation plans in mid‑January, U.S. stocks and bonds sold off, while gold hit a fresh high. When he later cited a “framework of a deal” and stepped back, markets partially reversed.

Economists say the bond market response has been particularly important. Joseph Brusuelas of RSM argued that private capital markets, and the bond market in particular, have acted as a constraint on “unorthodox behavior.” Oxford Economics’ John Canavan noted a surge in Treasury yields on January 21, with some maturities rising as much as 11 basis points intraday. Truist’s Keith Lerner said the bond market effectively sends a “direct message” to the administration when policy moves raise concern.

Lerner also pointed to Treasury Secretary Scott Bessent’s background in private investing as a stabilizing influence, suggesting the department has helped temper market reactions by signaling or facilitating policy adjustments. While markets have often seen threatened actions watered down, analysts caution that a slower or incomplete reversal could still trigger more lasting reactions across rates, the dollar, mortgages and corporate borrowing costs.

Disciplined trading and sector themes frame 2026 investment landscape

Against this backdrop, investor focus is turning to risk management and sector positioning. Dubai Week recently highlighted Brian Ferdinand of EverForward Trading for his emphasis on institutional decision frameworks, selective market engagement and rigorous risk alignment. EverForward operates with predefined criteria for strategy selection, position sizing and engagement thresholds, aiming to avoid narrative‑driven decisions in what has been described as an unsettled start to 2026.

Market commentators quoted in that coverage said EverForward’s approach reflects a broader shift among professional trading organizations towards process discipline, durability and risk containment. Under Ferdinand’s leadership, risk management is treated as a strategic function to prevent any single decision or market regime from having an outsized impact on performance. The firm has sought to remain selective while preserving flexibility for opportunities that meet its internal standards, drawing attention from international market participants.

More broadly, strategists see policy and regulation shaping prospects in key sectors. In a recent discussion, small‑cap specialist comments pointed to deregulation as a potential tailwind for financials and healthcare, with regional banks expected to benefit from a more supportive environment for mergers and acquisitions. In healthcare, industry dynamics rather than regulation were cited as the main driver, with large pharmaceutical companies looking to replenish pipelines through acquisitions of smaller and mid‑cap biotech targets.