Mario Draghi has signalled that he would be prepared for the European Central Bank to fight deflation in Europe by buying packages of bank loans to households and companies. Such a move would mark a sharp departure from traditional quantitative easing and provide a potential fix to the collapse in bank lending in the currency bloc. – Financial Times

Vodafone has approached the private equity owners of a Spanish broadband operator about a potential £7bn offer as part of its efforts to expand across Europe. The British company, already one of the largest telecoms operators in Spain, is understood to have entered into talks with the shareholders of Ono, which recently declared its interest in a flotation in its home market. – The Times

US jet-turbine manufacturer Pratt & Whitney is hoping to make a comeback with its new generation of jet engines – centred around the “geared turbofan” – which allows for greater fuel-efficiency. For Zafar Khan, analyst at Societe Generale, since Rolls Royce is a relatively small outfit, while its US rival is part of a deep-pocketed conglomerate, United Technologies, the latter might contemplate a bid for the UK outfit to ensure its return to the market for widebodied aircraft. – The Economist

Britain’s water companies could be told they cannot impose the increases on customer bills they had hoped to as regulators clamp down on the rises. Ofwat is expected on Monday morning to announce it has blocked the planned increases in water costs for the years 2015-2020 in an effort to call time on the industry’s debt-driven business model. – Daily Telegraph

Plans to boost North Sea oil and gas production, which experts say could generate at least £200bn for the UK economy, are set to be adopted by the energy secretary. Ed Davey is expected to back demands from the industry for a much tougher regulatory regime in the North Sea, requiring companies to collaborate to maximise the recovery of oil and gas from existing fields and new discoveries. – Financial Times

Ed Balls has hit back at accusations that Labour is anti-business for bringing back the 50p top rate of income tax for those earning over £150,000, suggesting it should be only a temporary measure. Amid complaints from City tycoons and donors about a return to the days of Labour kicking the rich, the shadow chancellor won the backing of senior party figures on the understanding the main purpose of the tax rise is fairness at a time of spending restraint. – The Guardian

The scale of London’s dominance of the economy will be revealed today in figures showing a “desperately unbalanced” recovery, in which ten times as many jobs are being created in the capital as in any other British city. To the likely concern of economists and opposition politicians, London accounted for 80% of national private sector jobs growth between 2010 and 2012, while Britain’s next nine largest cities created only 10% of all new private sector work. – The Times

Mark Carney, the Governor of the Bank of England, has told a group of senior bankers that dealing with the legacy of past wrongdoing is becoming the most pressing issue for the industry. Mr Carney is understood to have discussed the growing problem of conduct risks with Douglas Flint, chairman of HSBC, Peter Sands, chief executive of Standard Chartered, and Deutsche co-chief executive Anshu Jain, in a private session at the World Economic Forum. – Daily Telegraph