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WPP suffers worst day since 1998 after consumer goods groups cut spending

WPP, the world's largest advertising group, cut its sales target for the second time in six months on Wednesday after consumer goods giants curbed spending, putting its shares on track for their worst day in 19 years. Much of the problem stems from a move by packaged goods groups including Unilever, Nestle and Procter & Gamble to respond to weak growth by cutting back on advertising products such as washing powder, drinks and food. Like its rivals, WPP has also been hit by an ultra competitive environment in the United States where it lost two major contracts - VW and AT&T - meaning the group missed its first-half net sales target by some margin.


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