UPDATE 2-UK stocks weaken as Fed rate cut hopes fade; tobacco stocks rise

* FTSE 100 down 0.1%, FTSE 250 down 0.4%
* Pharma, banks biggest drags on main bourse
* Imperial Brands up on dividend plans, share buyback
* GVC slumps among midcaps after a media report

(Adds company news items, updates share moves throughout)
By Muvija M and Shashwat Awasthi
July 8 (Reuters) - London's FTSE 100 ended in the red on
Monday as markets remained subdued on dampened hopes of a hefty
rate cut by the U.S. central bank, while tobacco stocks jumped
on Imperial Brands' buyback and dividend revision plans.
UK blue-chip index .FTSE edged 0.1% lower in its third
session of losses - its longest losing streak in two months,
while the midcaps .FTMC fell 0.4% as a weaker sterling also
weighed on its domestically-exposed constituents.
Upbeat U.S. jobs data last week put off bets that the U.S.
Federal Reserve would give in to calls for aggressive policy
easing.
"Ordinarily, a strong set of employment data would lift
global equity sentiment, but seeing as a large portion of the
rally was driven by the belief that the Federal Reserve will cut
rates this month, equity markets are broadly lower today," CMC
Markets analyst David Madden said.
Imperial Brands IMB.L helped contain the losses on the
blue-chip index, adding 2.2% after the tobacco company announced
plans for a 200-million-pound buyback and said it would revise
its dividend policy. Rival British American Tobacco BATS.L
rose 1.5%. Losses in the blue-chip index were spread across sectors,
with pharmaceutical companies and banks most hit.
Miners .FTMNX1770 , however, snapped a three-day losing
streak on the back of higher copper prices. The sub-index had
slipped last week after China's top steel mills formed a group
to probe a record surge in ore prices.
British Airways owner IAG ICAG.L lost 1.4% on news that it
was facing a record $230 million fine from the UK's Information
Commissioner's Office for the theft of data from 500,000
customers from its website last year.
Asset manager Schroders SDR.L was among the biggest FTSE
100 losers with a 2.6% drop after brokerages Jefferies and
Barclays cut their ratings on the stock.
Online gambling firm GVC GVC.L slumped 7.1% to the bottom
of the midcap index after a Sunday Times report that the company
was facing questions as its CEO sold its Turkish business to a
partner associated with a stud farm.
Shares had briefly trimmed losses after GVC refuted the
report, saying it does not benefit from any operations in
Turkey.
Vivo Energy VVO.L gave up 3.6% as the African fuel
retailer issued a statement noting a media report in Morocco
citing engagement between the Competition Council and industry
participants as part of an ongoing investigation. ($1 = 0.7990 pounds)