UPDATE 2-Miners, strong sterling drag down FTSE 100

* FTSE 100 down 0.5%, FTSE 250 down 0.3%
* Miners biggest drag after Rio Tinto's output cut
* Ocado biggest blue-chip faller
* Saga at record low after poor trading update
* CYBG gains after Virgin Money rebrand plans

(Adds news items, analyst comment, updates to closing prices)
June 19 (Reuters) - Britain's main index slipped on
Wednesday, weighed down by miners after Rio Tinto cut its
forecast for shipments from an Australian region, while
sterling's gains ahead of Bank of England meeting dragged down
exporters.
The FTSE 100 index .FTSE dipped 0.5%, its worst fall this
month, while the FTSE 250 midcap index .FTMC was down 0.3%.
The indexes handed back some gains from Tuesday after a dovish
policy speech by European Central Bank chief Mario Draghi.
Anglo-Australian miner Rio Tinto RIO.L fell 4.7% after it
lowered its outlook for shipments from a hub in the Pilbara
region in Australia due to a higher proportion of certain lower
grade products. That had a knock-on effect on rivals as well, dragging the
sectoral index .FTNMX1770 nearly 3% lower to its worst day in
more than six months.
Online grocer Ocado OCDO.L fell nearly 6% to the bottom of
the FTSE 100 index with a trader saying it was because of
negative sentiment stemming from a media report on stiff
competition in the quick delivery industry as Amazon.com
AMZN.O tied up with Morrison MRW.L .
Upmarket food retailer Marks and Spencer MKS.L dropped
4.5% after Tesco TSCO.L said it was considering a trial of an
upmarket convenience store under the "Tesco finest" banner.
British American Tobacco BATS.L , Unilever ULVR.L and
Reckitt Benckiser RB.L , which get a chunk of their revenue in
U.S. dollars, weakened as the pound rallied before the BoE
policy meeting where it might strike a relatively more confident
tone than its counterparts.
All eyes are now on the conclusion of the U.S. Federal
Reserve's two-day meeting after markets close.
British Airways owner IAG ICAG.L fell 3.2%, after earlier
touching a two-and-a-half-year low, and easyJet EZJ.L dropped
2.6%. HSBC downgraded the stocks after German airline
Lufthansa's profit warning this month.
"We are increasingly cautious towards European airlines ...
expect many will follow Lufthansa's profit warning," HSBC
analysts wrote. They also forecast weakness in long-haul and
corporate travel demand in Europe.
Online takeaway service Just Eat JE.L lost 3.7% after a
rating cut by UBS.
British American Tobacco BATS.L and Imperial Brands
IMB.L weakened after Nielsen data indicated that UK retail
cigarette sales fell in May. Among midcaps, insurance and tourism firm Saga SAGAG.L
plunged 12.1% to a record low after warning that its tour
operations were still being undercut by political uncertainty in
Britain.
Fashion retailer Ted Baker TED.L slumped 9% to a record
low after HSBC slashed its price target by more than half to
lowest compared to other brokerages. Clydesdale and Yorkshire Banking Group CYBGC.L , however,
jumped 6.2% after the lender laid out plans to challenge
Britain's big banks, betting that a re-brand as Virgin Money
will help it shake up the market.