Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(}function setPanelState(o){dom.root.classList[o?"add":"remove"](,dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

These are stories Report on Business is following Friday, Nov. 1, 2013.

Follow Michael Babad and The Globe's Business Briefing on Twitter.

Record wage gap
Canadian readers can be forgiven if they missed a key statistic - $6 - because they were riveted by that other news story yesterday.

Story continues below advertisement

That $6 figure represents a record hourly pay gap, including overtime, between wage earners in the province of Alberta and those in the east.

And it's one of the reasons that so many people are leaving some parts of Canada for better prospects elsewhere, according to Bank of Montreal.

Data released yesterday by Statistics Canada showed the difference in average hourly wages in Alberta and the rest of the country, but for Saskatchewan, widened again in August.

"Note that hourly wages are now nearly $6 less in Atlantic Canada than in Alberta, the widest gap on record, a factor that has contributed to pushing more than 11,000 migrants out of the region in the past year - a major headache for housing markets, government finances, etc.," said senior economist Robert Kavcic of BMO Nesbitt Burns.

"Even B.C. is seeing the wage gap approach $4/hour versus Alberta, and not coincidentally is also seeing a decade-high net outflow of workers."

Average weekly earnings, including overtime, rose in Alberta in August to $1,117.68, according to Statistics Canada, the highest in the country but for the Northwest Territories.

Compare that to Nova Scotia, where those paycheques fell to $809.31.

Story continues below advertisement

According to a recent study by Toronto-Dominion Bank, Alberta and Saskatchewan were along among Canada's provinces in drawing in people between 2010 and 2012. All other regions saw people leave home.

Last year, for example, more than 100,000 people flocked to Alberta, while 56,000 left the province. That brings the net inflow to just shy of 46,000, or 1.2 per cent of the population of the home of the nation's oil industry.

Alberta and Saskatchewan also boast the country's lowest unemployment, at 4.3 per cent.

"Consistent with general perception, the destination of migrants is increasingly the greener economic pastures of Alberta and Saskatchewan," said TD economist Jonathan Bendiner.

"Indeed, Alberta, which accounts for 11 per cent of the national population, managed to attract over 100,000 in-migrants (almost one-third of total migrants) from other provinces in 2012 - a higher reading than compared to the heyday of the oil boom in 2005-06."

Barrick sinks
Shares of Barrick Gold Corp. sank further today after the miner's blockbuster announcement of a $3-billion (U.S.) stock sale after markets closed yesterday.

Story continues below advertisement

The shares were down by 6.1 per cent to $18.21 about 30 minutes before the New York open.

The stock sale, among the biggest ever in Canada, was just one of the key moves announced yesterday by the world's biggest gold miner.

As The Globe and Mail's Rachelle Younglai reports, Barrick also decided to suspend construction at its Pascua Lama gold and silver project that sits on the border of Chile and Argentina.

Barrick is moving to slash costs and bring down a fat debt level.

JPMorgan, Citigroup caught up in probes
Add two more big banks to the growing list of those caught up in probes of the currency markets.

In documents filed with the Securities and Exchange Commission today, JPMorgan Chase & Co. and Citigroup Inc. said they have received information requests from authorities.

Story continues below advertisement

JPMorgan did not specify whether it was part of the same investigation, but several European banks have already been asked for information in relation to possible manipulation of foreign exchange markets.

"These investigations are in the early stages and the firm is co-operating with the relevant authorities," the Wall Street giant said.

JPMorgan also disclosed that the SEC and the Justice Department are seeking information related to the bank's hiring practices in Hong Kong. Again, the bank said it is co-operating, and that other authorities have already done so.

"The firm has received subpoenas and requests for documents from the SEC's Division of Enforcement regarding, among other things, hiring practices relating to candidates referred by clients, potential clients and government officials, the firm's employment of certain former employees in Hong Kong, its business relationships with certain related clients in the Asia Pacific region and its engagement of consultants in the Asia Pacific region," it said.

SNC swings to loss
Canada's SNC-Lavalin Group Inc. plunged to a third-quarter loss, but said its "difficult" decisions should ease the swings in its results going forward.

SNC lost $72.7-million or 48 cents a share in the quarter, compared to a profit of $114.1-million or 75 cents a year earlier.

Story continues below advertisement

"The decisions we have made during the third quarter, while difficult, were necessary," said chief executive officer Robert Card.

"The impact of the most recent extensive evaluation and analysis of our ongoing projects and the implementation of our globalization program should reduce future earnings volatility and restore our selling, general and administrative expenses … to historic levels."

Streetwise (for subscribers)

Economy Lab

ROB Insight (for subscribers)

Business ticker

Story continues below advertisement

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to If you want to write a letter to the editor, please forward to

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies