Good morning. The U.S. government sued TikTok on Friday, alleging the Chinese-owned social-media company knowingly and repeatedly failed to protect the privacy of children.

• The allegations: The complaint, brought by the Justice Department in coordination with the Federal Trade Commission, accused TikTok of failing to comply with the Children’s Online Privacy Protection Act. That 1998 law requires internet companies to provide parental notification and obtain parental consent before collecting personal information from children under the age of 13.
   
• Size of lawsuit unclear: Friday’s lawsuit seeks monetary penalties, but doesn’t provide an estimate of the damages being requested. ByteDance was also named as a defendant in the case.
   
• Government's view: FTC Chair Lina Khan said that TikTok had threatened the safety of millions of children across the U.S. Companies such as TikTok are deploying “increasingly sophisticated digital tools to surveil kids and profit from their data,” Khan said.
   
• Background: The lawsuit, filed in federal court in Los Angeles, adds to TikTok’s escalating legal challenges in one of its most valuable markets. In April, President Biden signed a law that will force a sale or ban of TikTok. TikTok’s Chinese parent company, ByteDance, is challenging that law in court.

Chevron to leave California for Texas, as regulations mount in Golden State.

Chevron is relocating to Texas, deserting California, its home state for more than 140 years, where the business climate has soured for oil companies.

Regulatory complaints: Last year, California’s attorney general, Rob Bonta, filed a lawsuit against Chevron and other large oil companies such as Exxon Mobil and Shell, making a case that the companies didn’t inform the public of the effects of burning fossil fuels on the climate. Chevron said in January it would write down as much as $4 billion in assets, mostly in California, citing regulatory challenges there.

The activist pushing companies to ditch their diversity policies.

It took three weeks of tweets from conservative activist Robby Starbuck for Tractor Supply to scrap its diversity and inclusion program. Tractor-maker Deere folded even faster.

“Our next company we go after will be shorter than that,” Starbuck said in an interview with The Wall Street Journal.

Starbuck, 35, has launched campaigns to stoke outrage about what he calls companies’ “woke” diversity, equity and inclusion initiatives. Many of his 500,000 followers on X have joined in, including retweets from Elon Musk, building a chorus of criticism that, in part, caused Tractor Supply and Deere to abandon some of their efforts aimed at supporting workers from underrepresented backgrounds.

• Four generations of Tysons have held senior roles at the company that bears their name. Now the future of their $21 billion empire is in question as it works to address slumping sales.
   
• A Delaware judge, who earlier this year tossed out Elon Musk’s multibillion-dollar pay deal at Tesla, challenged the company’s argument that a shareholder vote overwhelmingly reapproving the original deal should change the court’s earlier decision.
   
• A U.S. Tax Court judge has ruled that Coca-Cola is on the hook for about $2.7 billion, or about $6 billion including interest, in a long-running dispute with the Internal Revenue Service.
   
• The Internal Revenue Service’s first big batch of rejected claims of a controversial pandemic-era tax credit contains obvious mistakes by the government, tax advisers say, as the IRS struggles to separate legitimate refund requests from bogus ones.
   
• Hawaiian Electric agreed to pay nearly $2 billion as part of a joint $4 billion settlement to resolve mass lawsuits filed over the Maui wildfires that killed more than 100 people and destroyed historic Lahaina last year.

Tight job market delivered widespread rewards. They are at risk.

The red-hot labor market that followed the pandemic showered benefits far and wide, lifting more people into employment, unwinding wage inequality, spurring business creation and ramping up investment in technology.

All that could be at risk. In July, the unemployment rate jumped to 4.3% from 4.1% and is up nearly a percentage point from the low of 3.4% early last year. The economy added 114,000 jobs, the slowest since late 2020 except for this past April.

Economists caution it is too soon to say the labor market is rolling over or a recession is in the wings.

• U.S. Hiring Slowdown Hits Stocks, Fuels Bets on Bigger Rate Cut
• Global Selloff Intensifies; Nasdaq Futures Slide 3%
• Japan’s Nikkei Suffers Worst Day Since 1987, Hit by U.S. Concerns

Iran rebuffs calls for restraint in its response to killing of Hamas leader.

Iran rejected U.S. and Arab efforts to temper its response to the killing in Tehran of Hamas’s top political leader, as authorities were investigating the security breaches that led to the attack.

Iranian prosecutors said Saturday that they had opened a formal investigation into the killing of Ismail Haniyeh, which came hours after an Israeli strike killed a senior Hezbollah commander in Beirut. The two attacks, following a rocket strike on a soccer field in the Israeli-controlled Golan Heights, escalated a recent cycle of violence and threatened to push the region to the brink of war.

Iranian leaders have vowed to retaliate. On Saturday, Iran told Arab diplomats that it didn’t care if the response triggered a war, according to people familiar with the conversations.

• Israel, U.S. Prepare for Severe Iranian Retaliation
• Israel’s Strikes on Its Enemies Show a High Appetite for Risk

• Countries around the world are throwing tens of billions of dollars at manufacturing in a race to dominate clean energy, computer chips and other technologies of tomorrow. But when it comes to lavishing support on its favored industries, China is in a league of its own.
   
• Workers who perform strenuous tasks in sometimes sweltering settings have long been vulnerable to injury or illness. Now, as climate change drives temperatures to record highs, they are more susceptible than ever.
   
• Tropical Storm Debby picked up strength Sunday as it raced toward Florida, where it is expected to make landfall as a hurricane and bring dangerous flooding to the southeast Atlantic coast later in the week.
   
• British police Sunday battled to contain a series of violent anti-immigration protests that have swept through several major cities in recent days.
   
• Bangladesh Prime Minister Sheikh Hasina resigned on Monday, the army chief said, after weeks of violent student protests that roiled the country and led to hundreds of deaths.

• Donald Trump ignited a firestorm by questioning Kamala Harris’s racial identity, an attack that risks harming his larger campaign strategy to define her.
   
• Vice President Kamala Harris has deep ties to some of Wall Street’s biggest rainmakers.
   
• A spa worker and schoolteacher are among the estimated 20 U.S. citizens still held by Russia.
   
• Big technology companies deepened their commitments to artificial-intelligence efforts in the latest quarter, pouring billions of dollars into capital-spending projects and telling investors more is on the way.
   
• Running Intel was always a dream job for Pat Gelsinger. More than three years into his tenure as chief executive, prospects for the success of his turnaround look increasingly nightmarish.
   
• Employers teach de-escalation techniques as divisive political discussions become almost impossible to avoid.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

You can reach us by replying to any newsletter, or email David at david.smagalla@wsj.com.