UPDATE 2-AstraZeneca drags FTSE 100 lower, Vodafone surges on outlook

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* Diageo rises on strong mid-term forecast

* Strong jobs data cements rate-hike expectations

* Vodafone gains on updated cashflow outlook

* FTSE 100 down 0.3%, FTSE 250 off 0.4%
(Updates to close)

By Bansari Mayur Kamdar and Devik Jain

Nov 16 (Reuters) - London's FTSE 100 slipped on Tuesday,
weighed down by weaker shares of AstraZeneca and heavyweight
consumer staples stocks, although upbeat earnings updates from
Vodafone and spirits maker Diageo limited overall declines.

The blue-chip index closed 0.3%, lower, with
drugmakers AstraZeneca and GlaxoSmithKline down
4.1% and 1.9%, respectively.

Large dollar-earning companies including British American
Tobacco, Reckitt Benckiser and Unilever
fell and were among the biggest drags on the index.

Vodafone jumped 4.8% to top the FTSE 100, as the
mobile operator increased its free cash flow outlook after it
reported a solid growth in earnings in its first half.

The domestically focussed mid-cap FTSE 250 index
ended 0.4% lower, shrugging off data that showed the UK economy
withstood the end of the government's furlough scheme last
month, cementing expectations of an interest rate hike in
December.

"We still seem to be caught between two strong
counter-forces, a strong earnings season providing the bullish
case and a long list of downside risks - most notably inflation
and interest rates - which continue to weigh on sentiment," said
Craig Erlam, senior market analyst, UK & EMEA at OANDA.

"What we did see from the report in relation to October
payrolls was encouraging and makes the December BoE meeting very
much a live one."

Financial markets have currently priced in a near 100%
chance that the Bank of England (BoeE) raise rates to 0.25% from
0.1% in December.

Bogged down by inflationary pressures and supply chain
problems, the FTSE 100 has gained just 13.5% this year,
underperforming its European and U.S peers.

The focus is now on consumer prices data on Wednesday.

Among other stocks, Diageo added 1.2% as the Johnnie
Walker whisky maker forecast double digit sales growth in first
half.

Restaurant Group Plc climbed 16.8% after the
Wagamama owner raised its annual profit outlook

Land Securities Group gained 3.7%, after UK's
largest commercial property firm swung to a half-year profit.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Shounak Dasgupta, William Maclean)