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Kansas City Southern and CSX Fall on Report of Biden Regulatory Pressure

The Biden administration will urge regulators to fight monopolist trends in the industry, according to The Wall Street Journal.
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Railroad stocks, such as Kansas City Southern  (KSU) - Get Kansas City Southern (KSU) Report and CSX  (CSX) - Get CSX Corporation Report, fell Thursday after a report said the Biden administration will urge regulators to fight monopolist trends in the industry.

Specifically, the White House will direct regulatory agencies to deal with consolidation and unfair pricing in the railroad and ocean shipping sectors, a source told The Wall Street Journal.

The low number of companies that dominate those industries has kept prices high, the administration maintains. The idea is to keep big firms from ruling the industries, the source said.

Kansas City Southern traded Thursday at $261.66, down 8%. CSX was at $31.01, down 6%, and Union Pacific  (UNP) - Get Union Pacific Corporation Report fell 5% to $218.01.

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An executive order is likely this week, directed toward the Federal Maritime Commission and the Surface Transportation Board, the Journal reported.

On the shipping side, Maersk, the Danish shipping giant, traded at $14.33, down 2.85%.

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