For instance, manufacturing still accounts for some 15 per cent of the UK economy, but it proved virtually impossible to find any large, quoted examples of pure UK manufacturing. Ownership of UK manufacturing, it seems lies mainly overseas, or in the hands of international conglomerates and private equity.Yet with an index of 100 constituents, we can reasonably reflect the continued importance of manufacturing to the UK with a larger quantity of small British industrial success stories.We encountered the same problem with the City, now of vital importance to Britain’s economic success, but in investment banking at least, largely controlled by overseas concerns such as Goldman Sachs and Deutsche Bank. They are also chosen on a discretionary basis to be representative of the US economy.In performing the same exercise for the UK, we found that 30 was not enough, or rather that it was too small meaningfully to reflect the make-up of the UK economy. While this accurately reflects capital allocation, it is not the way most ordinary mortals would chose to invest.Our approach in constructing the Indy 100 is to adopt in broad outline the model used by the Dow Jones Industrial Average in the US. Each of the Dow’s 30 constituents are assigned an equal weighting in the index, regardless of size. In other respects the index seems more and more a measure of only the random and the oddball.The FTSE 100’s other main drawback, it has long seemed to me, is that it is a weighted index, in that it is calculated according to the market capitalisations of its constituents.Companies with the highest stock market values gain a disproportionately large weighting within the index, making it highly sensitive to whatever the fashion sectors of the moment happen to be.

How weird is that? Indeed the only thing that gives meaning to the FTSE 100 at all these days is that all its constituents chose to have their primary listing in London. Over the years, the FTSE 100, the most commonly used yardstick for the ups and downs of the UK stock market, has become an increasingly irrelevant guide not just to the UK economy, but even to the true stock market performance of UK companies.
Dominated by a curiously eclectic mix of multinational oil, mining, financial and pharmaceutical companies, it is neither fish nor fowl, neither truly representative of the global economy nor properly grounded in the UK economy either.Some of the latest additions to the FTSE 100 include an online poker gaming company registered in Gibraltar but with the vast majority of its earnings derived from the United States, and a Kazakhstan copper mining concern. He tried but failed to get a seat on the Corus board.Anglo American announced in October it would sell its 79 per cent stake in Highveld as the result of a group-wide strategic review.. Tricky things, stock market indices, as the business reporting team at The Independent has discovered in attempting to devise an index which more accurately reflects the performance and successes of the UK economy than the measures used by FTSE, a joint venture between the Financial Times and the London Stock Exchange.

The organisers are currently evaluating the candidates.”Mr Usmanov, one of Russia’s richest men who is reckoned to be worth $2bn, started building a stake in Corus in 2003, using a Cyprus-based investment vehicle, becoming the second-biggest investor. “The company is interested in this project,” Metalloinvest said “We have been included in the shortlist. Mittal provides steel at world prices, rather than reflecting the fact that the raw materials are available in South Africa, meaning that the product ought to be available more cheaply, the government says.Mr Usmanov’s company Metalloinvest, which runs Urals Steel, confirmed its bid for Highveld. India’s Tata Steel is also likely to be involved, though it has indicated it is not interested in the whole of Highveld.Mittal Steel, which is majority owned by Lakshmi Mittal, is embroiled in a bitter $23.5bn hostile bid for Arcelor in Europe. Mittal’s South African subsidiary is already the biggest steel industry player in South Africa.

Davinder Chugh, the chief executive of Mittal Steel South Africa, suggested in November that the company would be interested in Highveld. But Mittal declined to comment yesterday.Analysts said Mittal would face huge regulatory problems if it tried to buy Highveld. Not only is it already the market leader in South Africa but the government is concerned about the price at which Mittal supplies steel to businesses in the country. Mr Usmanov, who sold down his 13 per cent stake in the Anglo-Dutch steel group Corus late last year at a profit of more than £130m, may find himself competing with the global leader Mittal Steel in the auction of Anglo’s Highveld business.
Kermas, a business with operations in Russia, Germany and Turkey, has said it will also be bidding for Highveld, which is South Africa’s second-biggest producer. Sources close to the inquiry confirm the offices appear to have been broken into on consecutive weekends in January. WPP’s Italian arm brings in $250m (£140m) a year, barely more than 2 per cent of group revenues Consequently, investors have given it little attention.

But analysts concededthere is a “reputational” risk to the company if the scandal drags on.. Alisher Usmanov, the Russian tycoon who once built up a substantial shareholding in Corus, has submitted a bid to buy Anglo American’s steel operations in South Africa, with an offer thought to be worth $1bn (£570m). He ran the Italian operation, earning commission for business brought to the group.WPP alleges he inflated performance figures to raise his fees, which Mr Benatti denies. The advertising giant also contends Mr Benatti hid his stake in Mediaclub, a firm he recommended WPP should buy. Mr Benatti denied he did any such thing yesterday and claimed his stake is inconsequential in any case.WPP filed a suit against Mr Benatti on 11 January. The court document claims damages for “breach of fiduciary duties”.Further details emerged of two alleged break-ins at the Milan offices of WPP.