Axios

The State Department said on Thursday it would "respond appropriately" after the Kremlin expelled two American diplomats for allegedly "liaising" with a former U.S. consulate worker who has been accused by Moscow of spying.

Why it matters: Russia's decision to expel the diplomats marked another serious escalation in U.S.-Russia relations.

Israeli Prime Minister Benjamin Netanyahu will meet with Elon Musk in San Francisco, the Israeli leader's office said in a statement Thursday.

Why it matters: The meeting, scheduled for Monday, comes as Musk continues to take aim at the Anti-Defamation League (ADL), a leading Jewish organization in the U.S., on X, formerly known as Twitter.

The official death toll from this week's devastating flooding in northeastern Libya surpassed 5,500 people on Thursday, but it is expected to significantly rise, with the mayor of the most affected city, Derna, saying as many as 20,000 people are feared dead.

Driving the news: Mediterranean Storm Daniel brought strong winds and heavy rains to east Libya Sunday into Monday, causing floodwaters to burst through dams, destroy homes and buildings, and wash away entire neighborhoods.

Olympic hopefuls from Mexico say they've been forced to personally raise funds to cover the costs of competing in the Pan American Games, which help determine who competes in Paris next year.

State of play: The Mexican artistic swimming team, the current world champions in the technical competition, has had to depend on strangers to help pay for uniforms, airfare and other needed expenses in their quest to extend their winning streak at the games, which start next month in Chile

A trademark dispute between Nestlé USA and two Mexican distributors could affect the types of staple products found in many Latino pantries.

Why it matters: The fight, headed to trial in federal court this November, comes as all kinds of companies try to tap into the growing, multi-trillion-dollar U.S. Latino market.

The U.S. targeted a slew of foreign individuals and companies accused of aiding Russia in a slate of new sanctions announced by the State and Treasury Departments Thursday.

Why it matters: While the U.S. and its allies have already imposed extensive sanctions on Russia since its invasion of Ukraine, the new slate takes aim at individuals and companies that act as transit hubs for the flow of crucial goods into Russia.

Satellite images taken before and after floodwaters in northeastern Libya burst through dams and wiped out buildings and entire neighborhoods show the sheer scale of the deadly destruction caused by Mediterranean Storm Daniel.

The big picture: East Libyan officials say at least 5,500 people were killed in the floods, though the mayor of the most affected city, Derna, warned Thursday that the death toll could reach as many as 20,000.

The European Central Bank (ECB) announced its 10th consecutive interest rate increase on Thursday, a surprise move for some who were expecting officials would pause the rate-hiking campaign.

Why it matters: It's the latest sign that policymakers believe inflation is still too persistent to forgo a quarter-percentage point hike, even as other global central banks have eased efforts to slow their respective economies.

North Korea leader Kim Jong-un met with Russian counterpart Vladimir Putin on Wednesday amid rising concerns about military cooperation between the two U.S. adversaries.

Why it matters: U.S. officials are worried that Pyongyang could supply weapons to the Kremlin for Putin's war in Ukraine. Asked whether the leaders would discuss arms supplies or "military-technical co-operation," Putin said "we will discuss all issues," per a BBC translation.