0654//Lavrov suggests a delay to peace talks; inflation slows raising prospect of interest rate cut

PUTIN-ZELENSKY TALKS: Sergei Lavrov, Russia's foreign minister, suggested on Thursday that a meeting between Vladimir Putin and Volodymyr Zelensky wasn't imminent. He challenged Zelensky's legitimacy as Ukraine's president because he has not faced an election since 2019 and said that all the issues needed to be "well worked out". (COMMENT: This was not unexpected. The Kremlin has been dragging its feet over a potential meeting between Putin and Zelensky all week.)

STOCK MARKET FALLS: Moscow's stock market fell by nearly 2% after Lavrov's comments. Traders said that this was a reaction to the Kremlin statement and also to comments from Trump that he may "switch tactics" if Russia doesn't begin peace negotiations soon.

INFLATION: Inflation in Russia has slowed to 8.46%, the economy ministry said on Thursday. This is the lowest level since May 2024. (COMMENT: This drop in inflation is partially seasonal as vegetables and fruit become cheaper in summer. In the data, though, the cost of fuel is increasing. This is linked to Ukrainian drone attacks on oil refineries. Still, the inflation drop may allow the Central Bank to cut interest rates to 16%, from 18%.)

FLOODING: Heavy rain triggered flooding in Russia's Far East region of Magadan on Thursday. Reports said that power has been lost to several villages. Photos showed several destroyed bridges. The governor has declared a state of emergency.