UPDATE 2-British bluechips dragged down by banks amid rate cut fears

* FTSE 100 down 0.1%, FTSE 250 down 0.4%
* Banks biggest drag on main index
* Ryanair gains after raising forecast, buoys rivals
* Retailers suffer on weak Christmas updates

(Adds company news items, updates to closing prices)
By Shashwat Awasthi and Muvija M
Jan 10 (Reuters) - British bluechips shed early gains on
Friday as a slide in banks overshadowed a rise in airlines amid
fears of a rate cut.
Both the benchmarks missed out on a Wall Street frenzy that
took all three U.S. indexes to all-time highs despite weak jobs
data for December. The FTSE 100 .FTSE ended 0.1% lower after trading most of
the session in positive territory.
An index of bank stocks gave up 1% .FTNMX8350 , led by a
2.5% drop in Lloyds LLOY.L , after Bank of England policymaker
Silvana Tenreyro joined the central bank's head Mark Carney in
leaning towards lowering interest rates if growth does not
improve.
But a near 5% gain for British Airways owner IAG ICAG.L
and a 4.2% rise in easyJet EZJ.L limited losses.
Irish carrier Ryanair's London-listed shares RYA.L jumped
6% to their highest since June 2018 after reporting a
better-than-expected performance during the Christmas and New
Year travel period.
The FTSE 250 .FTMC dipped 0.4% to its lowest in over three
weeks, with retailer B&M BMEB.L falling 6% on slowing sales
growth in the Christmas quarter and Watches of Switzerland
WOSG.L losing 4% following a discounted share sale.
Aston Martin AML.L outshone the index, leaping 15.3% on
its best day since early December after a report that China's
Geely Automobile Holding 0175.HK was in talks about taking a
stake. Once again, most retailers came under pressure.
Superdry SDRY.L slipped 7% to its lowest in over a year as
sales during the peak holiday period fell short of its
expectations. Joules Group JOUL.L tanked 21% to a life low after a
profit warning due to a shortage of merchandise during the
Christmas period. It has been a rollercoaster ride for the retail sector as
companies issue updates on holiday trading.
Morrisons MRW.L and Tesco TSCO.L gave better-than-feared
numbers, but Sainsbury's SBRY.L and Marks & Spencer MKS.L
have not matched up to market expectations, which led to a share
slump in both stocks this week.
With a Brexit showdown in the form of a general election
last month interrupting the holiday season and consumer
sentiment remaining overall weak, smaller retailers have borne
the brunt of High Street challenges.
Another notable loser on the FTSE 100 was packaging firm
Mondi MNDI.L , which dropped 2% after announcing the departure
of its top boss Peter Oswald after nearly three years in the
role.