UPDATE 2-FTSE 100 drops as Just Eat rues Amazon backing rival, exporters cushion fall

* FTSE 100 down 0.1%, FTSE 250 down 0.2%
* Just Eat slips after Amazon backs rival
* easyJet rises after affirming FY targets
* Metro Bank surges after raising capital
* Thomas Cook at 7-1/2-yr low after Citi downgrade

(Adds news items, analyst comments, updates to closing prices)
By Shashwat Awasthi and Yadarisa Shabong
May 17 (Reuters) - London's main share index dipped on
Friday, as Just Eat slumped after Amazon backed rival food
delivery firm Deliveroo in a funding round, but losses were
limited as exporters were helped by a slide in sterling amid
renewed Brexit jitters.
The FTSE 100 .FTSE lost 0.1%, but still bagged weekly
gains after a turbulent few sessions largely dominated by global
trade relations. The FTSE 250 .FTMC slipped 0.2%.
Online takeaway service Just Eat JE.L tumbled 8.2%, its
steepest one-day decline in more than a year, after rival
Deliveroo said it had gained Amazon's AMZN.O backing in a $575
million funding round. The FTSE 100's decline on Friday came after three sessions
of gains, as markets took stock of a plethora of news on
Sino-U.S. trade relations, which were strained further after a
volley of tariffs and U.S. sanctions on Chinese telecoms firm
Huawei.
Worries over the impact of Britain's departure from the
European Union resurfaced. Sterling dived to a four-month low
after cross-party Brexit talks collapsed and concern over UK
Prime Minister Theresa May's position grew.
"With the prospect of a new Prime Minister, a general
election or the prospect of a Labour government, investors
appear to be taking the view that from a political point of
view... the UK is running the risk of becoming uninvestable,"
CMC Markets analyst Michael Hewson said.
Blue-chip exporter stocks lent some support to the index and
limited its losses as the pound was hit by the latest Brexit
melee. GBP/
Budget airline easyJet EZJ.L , which has seen significant
headwinds as a result of Brexit uncertainty, warned of lower
revenue in the second half of the year. But its shares rose 5.3%
as it stuck to its annual forecast. Meanwhile, shares of Thomas Cook TCG.L plunged nearly 40%
to a 7-1/2-year low, after Citi downgraded it to 'sell' and cut
its target price on the stock to zero in the wake of the travel
operator's latest profit warning.
Metro Bank MTRO.L surged 26% on its best day since
floating in March 2016, after it raised 375 million pounds of
capital. Despite the gains, the stock has lost 60% in value this
year after it disclosed an accounting error that led to a
regulatory probe and the cash call.