Bloomberg reports that the UK's FTSE 100 Index officially entered a bear market last week, closing 22% from last year's high on Friday. This is the UK's 19th bear market since 1918.

The news agency quotes Simon Melluish, head of research at Gartmore Investment Management, who said: 'Bear markets can go on for a long time, especially if fundamentals are still deteriorating. The market has come down a lot in anticipation for the fact that the earnings will be very tough. A lot of people are very gloomy'.

The Financial Times reports that there was no let-up for Lehman Brothers again Friday, as the firm's shares closed down a further 16%. The stock fell 37% last week alone, and is now off 78% this year. Rating agency Standard & Poor's said, however, that the 'persistent and ongoing pressure on Lehman's stock price has not had negative effects on Lehman's liquidity, funding, or client business'.

Reuters reports that Fortis has sold its former ABN AMRO unit International Asset Management to the unit's management as it sells off non-core assets as part of its strategy to boost its balance sheet. The amount raised by the deal, which is not thought to be material, has yet to be disclosed.

The Times reports that shares in Royal Bank of Scotland have now plunged to their lowest level in almost 10 years.

The Daily Telegraph reports that London-based hedge fund RAB Capital's Special Situations fund, one of the best-performing funds over the last several years, was down some 17% at the half-year stage. The newspaper also reports that Toscafund, another London-based hedgie, was down 18% as at the end of June.

The Financial Times reports that, according to investors, activist hedge fund The Children's Investment Fund had its worst month ever in June, losing over $1bn. No-one is panicking, however as the hedge fund has a track record of bringing in annual returns of over 40%, and investors are warned to expect volatility at times.

Finally, the news agency also reports that (unsurprisingly) graduates are finding the layoffs now being seen in investment banking as a big turn-off when considering their future career paths. One unnamed graduate told Reuters that 'you would have thought there would be some loyalty to the individual, but it really isn't the case in this sector'.

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