1985 Economy & Business Events — Verified Historical Highlights
1985 Economy & Business Events — Verified Historical Highlights | TakeMeBack.to
- 07 Jan Founding of Saturn Corporation: Saturn Corporation was founded on January 7, 1985, as a subsidiary of General Motors. It was established to produce small cars and compete with Japanese automakers. Saturn was known for its innovative approach to manufacturing and customer service, and it played a significant role in the automotive industry during its operation. source: britannica.com
- 14 Jan British pound reaches record low against the dollar: On January 14, 1985, the British pound fell to a record low of $1.1105, prompting the Bank of England to raise interest rates by 1.5 percentage points to 12% in an attempt to stabilize the currency. Despite this intervention, the pound continued to decline, closing at $1.1105 in London and $1.1121 in New York. The decline was influenced by factors such as the strength of the U.S. dollar and concerns over oil prices. source: washingtonpost.com
- 22 Jan Florida citrus industry devastated by record cold wave: In January 1985, a severe cold wave, termed the "Freeze of the Century," struck Florida, causing extensive damage to the state's citrus industry. Temperatures plummeted to record lows, freezing oranges and potentially destroying thousands of trees, particularly in the northern regions of Florida's citrus belt. The freeze led to significant economic losses, with the government estimating a 13% reduction in the citrus crop, amounting to 104 million boxes, and a yield of 1.33 gallons of frozen concentrated juice per box, down from 1.46 gallons before the freeze. source: upi.com
- 27 Jan Economic Cooperation Organization established: The Economic Cooperation Organization (ECO) was established on January 27, 1985, by Iran, Pakistan, and Turkey. Its primary aim is to promote economic, technical, and cultural cooperation among member states, which has expanded to include several Central Asian and South Asian countries. The ECO has since worked on various initiatives to enhance trade and investment in the region. source: eco.int
- 13 Feb Dow Jones reaches record high on February 13, 1985: On February 13, 1985, the Dow Jones Industrial Average closed at a record high of 1,297.92, briefly surpassing the 1,300 mark during the trading session. This milestone was achieved amid investor optimism regarding declining interest rates and low inflation. The previous record was set on January 29, 1985, at 1,292.62. source: washingtonpost.com
- 17 Feb US Postal Rate Increase: United States Postal Service increases first-class postage rate from 20 cents to 22 cents, reflecting ongoing economic adjustments and inflation.
- 19 Feb Cherry Coke Introduction: Coca-Cola expanded its product line by introducing canned and bottled Cherry Coke, a significant moment in beverage marketing and consumer choice.
- 27 Feb Farmers rally in Ames, Iowa, protesting Reagan administration policies: On February 27, 1985, approximately 14,000 farmers gathered at Iowa State University's Hilton Coliseum in Ames, Iowa, to protest the Reagan administration's farm policies. The rally was one of the largest farm protests in American history, with farmers from various Midwestern states demanding federal assistance to address the agricultural crisis, including bankruptcy and farm foreclosures. The protesters called for a return to 100% parity on farm price supports and criticized the administration's advocacy of a 'free market' for agricultural commodities. source: washingtonpost.com
- 03 Mar UK miners' strike ends after nearly a year: The 1984–1985 UK miners' strike concluded on March 3, 1985, after 362 days of industrial action. The National Union of Mineworkers (NUM) voted to end the strike, and miners returned to work on March 5. The strike was initiated to oppose the closure of 20 coal pits, leading to significant economic and social impacts. The NUM's defeat marked a turning point in British industrial relations and the decline of union influence. source: bbc.co.uk
- 08 Mar Mohamed Al Fayed acquires Harrods department store: On March 8, 1985, Egyptian-born businessman Mohamed Al Fayed, along with his brothers Ali and Salah, completed a £615 million acquisition of the House of Fraser group, which included the iconic London department store Harrods. This purchase followed their earlier acquisition of a 30% stake in the company in 1984. The deal was marked by controversy, including an investigation by the Department of Trade and Industry into the Fayeds' background and financial resources. Despite the critical findings, the acquisition was allowed to proceed. source: theguardian.com
- 11 Mar Mohammed Al Fayed acquires Harrods: Mohammed Al Fayed, along with his brothers Ali and Salah, acquired Harrods in 1985 by purchasing a majority stake in the House of Fraser, which owned the department store. This acquisition marked a significant expansion of their business interests in the UK. source: theguardian.com
- 16 Mar Rare Postage Stamp Auction: A historic philatelic event occurred when the Heinrich Köhler stamp auction firm of West Germany sold an extremely rare Baden 1851 9-kreuzer postage stamp. The stamp, printed on blue-green paper instead of deep rose and postally used, was one of only four known to exist. It was sold for an impressive 2.645 million marks (equivalent to US$833,600), highlighting the significant value of rare postage stamps among collectors.
- 18 Mar Capital Cities Communications agrees to acquire ABC for $3.5 billion: On March 18, 1985, Capital Cities Communications Inc. announced a $3.5 billion agreement to acquire American Broadcasting Companies Inc. (ABC). The deal offered ABC shareholders $118 in cash per share, plus additional compensation, valuing the transaction at $121 per share. The merger was subject to approval by stockholders and the Federal Communications Commission (FCC). source: washingtonpost.com
- 01 Apr Japan privatizes Nippon Telegraph and Telephone Public Corporation: On April 1, 1985, Japan privatized the Nippon Telegraph and Telephone Public Corporation (NTT), transforming it into a private stock corporation. This move was part of a broader privatization initiative by Prime Minister Yasuhiro Nakasone's government, which also included the Japan Tobacco Industry. The privatization aimed to improve efficiency and reduce government debt. source: sjsu.edu
- 15 Apr Harrods Acquisition: Prominent businessman Mohamed Al-Fayed purchases Harrods, the iconic London-based luxury department store, in a significant business transaction.
- 20 May Dow Jones Reaches Historic Milestone: The Dow Jones Industrial Average closed above 1,300 points for the first time, signaling growing economic confidence and market strength in the mid-1980s.
- 02 Jun RJ Reynolds and Nabisco Merger Proposal: RJ Reynolds Company proposes a potential merger with Nabisco, signaling strategic corporate consolidation in the food and tobacco industries.
- 27 Jun New York hotel workers end 26-day strike with new contract: On June 27, 1985, over 5,000 hotel workers in New York City ratified a new contract, ending a 26-day strike that had affected 165 hotels, including the Plaza and the Waldorf-Astoria. The agreement provided wage increases totaling over 30% over five years and introduced additional benefits such as a scholarship fund for workers' children and enhanced health coverage. source: upi.com
- 09 Jul Statue of Liberty-Ellis Island Commemorative Coin Act enacted: On July 9, 1985, the Statue of Liberty-Ellis Island Commemorative Coin Act was enacted, authorizing the minting of three commemorative coins: a five-dollar gold coin, a one-dollar silver coin, and a half-dollar coin. These coins were issued to commemorate the centennial of the Statue of Liberty and the contributions of immigrants to America. The act also authorized the minting of one-dollar silver bullion coins, known as Liberty Coins, to meet public demand. source: congress.gov
- 17 Jul EUREKA Network founded on July 17, 1985: EUREKA, the world's largest intergovernmental network for international research, development, and innovation, was established on July 17, 1985, by 18 European countries and the European Commission. Its mission is to enhance European competitiveness and productivity by supporting cross-border coordination of national innovation policies and project funding. source: eurekanetwork.org
- 07 Aug Libya expels 100,000 Egyptians: In August 1985, Libya expelled approximately 100,000 Egyptian workers in response to Egypt's peace efforts with Israel. Libyan leader Muammar Gaddafi stated that Egyptian remittances were indirectly supporting Israel, leading to the expulsion of Egyptian workers. The decision was also influenced by financial considerations, aiming to prevent a drain of Libya's foreign currency earnings. source: upi.com
- 17 Aug Hormel meatpackers strike in Austin, Minnesota: On August 17, 1985, approximately 1,500 workers at the Hormel meatpacking plant in Austin, Minnesota, initiated a strike in response to a 23% wage reduction imposed by the company. The strike, which lasted until September 13, 1986, is among the longest in Minnesota's history and was marked by significant labor unrest and community division. source: en.wikipedia.org
- 21 Aug New York Lotto jackpot reaches $41 million, three winners share prize: On August 21, 1985, the New York Lotto jackpot reached a record $41 million, the largest lottery prize in North America at that time. Three ticket holders each won approximately $13.7 million, with one winner being Celso Manuel Garcete, a factory worker from Queens, who shared his winnings with 20 fellow employees. The winning numbers were 14, 17, 22, 23, 30, 47, and 33. source: washingtonpost.com
- 11 Sep Lotto 6/49 introduces bi-weekly draws in Canada: On September 11, 1985, Lotto 6/49 expanded its draws to twice a week, adding a Wednesday night draw to the existing Saturday night draw. This change aimed to increase player engagement and sales. source: societe.lotoquebec.com
- 19 Sep Allied Chemical Corporate Rebranding: Allied Chemical (Allied Corporation) officially changed its corporate name to Allied-Signal Incorporated, signaling a strategic rebranding and potential shift in the company's business strategy.
- 22 Sep Plaza Accord signed to address trade imbalances: The Plaza Accord was an agreement signed on September 22, 1985, by five nations: the United States, Japan, West Germany, France, and the United Kingdom. The accord aimed to depreciate the U.S. dollar in relation to the Japanese yen and the German Deutsche Mark to correct trade imbalances and stabilize the global economy. This agreement marked a significant moment in international economic policy. source: brookings.edu
- 24 Sep Apollo Computer Inc. announces 300 layoffs due to industry slowdown: On September 24, 1985, Apollo Computer Inc. announced the layoff of 300 employees, marking the company's first-ever workforce reduction. This decision was attributed to a projected $4 million after-tax loss for the third quarter, primarily due to a slowdown in the computer industry. The layoffs affected all departments and reduced the company's workforce to 3,400 employees. source: upi.com
- 15 Oct Franco Modigliani awarded Nobel Prize in Economics for pioneering analyses of saving and financial markets: On October 15, 1985, Franco Modigliani, a professor at the Massachusetts Institute of Technology, was awarded the Nobel Prize in Economic Sciences for his pioneering analyses of saving and financial markets. His work included the development of the life-cycle hypothesis of household saving and the formulation of the Modigliani-Miller theorems regarding capital costs and the valuation of firms. source: nobelprize.org
- 05 Dec Christie's sets record with 1787 Château Lafite auction: On December 5, 1985, Christie's auctioned a bottle of 1787 Château Lafite, believed to have been owned by Thomas Jefferson, for £105,000, setting a record for the most expensive wine sold at auction at that time. source: en.wikipedia.org
- 10 Dec Congress passes Balanced Budget and Emergency Deficit Control Act of 1985: On December 10, 1985, the U.S. Congress passed the Balanced Budget and Emergency Deficit Control Act of 1985, also known as the Gramm–Rudman–Hollings Act. This legislation aimed to reduce the federal budget deficit by mandating annual deficit reductions, with the goal of achieving a balanced budget by fiscal year 1991. The act introduced automatic spending cuts, known as sequestration, if deficit targets were not met. President Ronald Reagan signed the bill into law on December 12, 1985. source: reaganlibrary.gov
- 11 Dec General Electric acquires RCA in a major corporate deal: On December 11, 1985, General Electric (GE) announced its acquisition of RCA, a significant move in the corporate landscape. The deal, valued at approximately $6.3 billion, allowed GE to expand its presence in the media and electronics sectors, particularly through RCA's ownership of NBC. This acquisition marked a pivotal moment in the history of both companies and the broader media industry. source: nytimes.com
- 17 Dec US Gold Bullion Coin Act of 1985 enacted: The US Gold Bullion Coin Act of 1985 was signed into law on December 17, 1985. This legislation authorized the production of gold bullion coins by the United States Mint, allowing for the creation of the American Gold Eagle coin. The act aimed to promote the use of gold as an investment and to enhance the United States' position in the global gold market. source: congress.gov
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