"We felt we were playing not just for ourselves but for our whole country" -- Ervin Zádor 

On this day in 1956, Hungary and the Soviet Union clashed in the infamous "Blood in the Water" water polo match at the Melbourne Olympics. The match, which Hungary won 4–0, followed the Soviet suppression of the Hungarian Revolution. Ervin Zádor had scored two goals to the crowd's cheers of Hajrá Magyarok! ("Go Hungarians!") when he was punched. Pictures of his bleeding face were published around the world.

To avoid a riot, police stopped the game and the Hungarians were declared the winner because they were leading. They went on to win the gold medal.

HOUSING RISKS AND THE BANKS

Investors betting on a Canadian housing slump have longed smelled blood in the water and tried to feast by wagering against lending institutions. They include cantankerous San Francisco-based short seller Marc Cohodes who has questioned accounting standards at Home Capital Group  (HCG.TO).

Ottawa is considering forcing the banks to take on more pain when and if insured mortgages go sour. At 9:45 a.m. ET today, we’ll be joined by Doriana Gamboa, senior director at Fitch Ratings. Fitch reckons that  a lender risk sharing policy “will be applicable to new mortgage originations and thus fully phased in over a period of five years. This will shift some modest default risk.”

BMO TOPS ESTIMATES 

We’re also focusing on bank earnings after Bank of Montreal beat expectations in its latest quarter with earnings of  $2.10 per share, topping the $1.85 consensus. Barclays says “we would expect to see a favourable reaction in BMO’s share price today” but adds that “some of the luster may come off in the details as significant portions of the beat can be explained by benefits in more volatile lines (provisions and advisory fees) as well as a gain on sale within wealth management.”

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MORE FROM BNN ADVISOR

When to put real estate into a client’s portfolio

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SELECT SANDS

We’re talking sand on Commodities at 11:30 a.m. ET when we’re joined by Rasool Mohammed, president of Select Sands (SNS.V). The company is developing a project in Arkansas to supply speciality sand to the oil and gas industry, which uses it to prop open rocks shattered by fracking.

INDUSTRIAL ALLIANCE BUYING HOLLISWEALTH FROM SCOTIABANK 

We’re joined by a financial industry leader at 12:10 a.m. ET. Industrial Alliance Insurance and Financial Services (IAG.TO) CEO Yvon Charest will tell us why the insurer is buying mutual fund marketer and wealth planner HollisWealth from Bank of Nova Scotia (BNS.TO) for  $238 million.

“The relatively small amount of EPS accretion in 2019 and potential execution risks restrain our enthusiasm for this transaction,” Canaccord says. “IAG’s acquisition track record has been mostly positive. However, its most recent deal prior to Hollis makes us a bit more cautious. IAG acquired subprime auto lender CTL in October 2015 ($100M loan book). During Q3/16, the company reduced its accretion expectations and partially wrote down goodwill associated with CTL.”

Finally, we’re glad to see retailers keeping an eye out for shady behavior – fighting crime is everyone’s job.

Cops in Forest Grove, Oregon were summoned to a convenience store “after a man left with creamers that he did not immediately put into the coffee he purchased. Police declined to take enforcement action due to inconsistency and confusion with store policy on creamer use.”

That’s the sort of problem that could spiral into a crisis very quickly. 

Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.