1986 Economy & Business Events — Verified Historical Highlights
1986 Economy & Business Events — Verified Historical Highlights | TakeMeBack.to
- 01 Jan NYC Transit Fare Increase: New York City transit fare increases from 90 cents to $1.00, reflecting urban economic changes.
- 06 Jan Impala Platinum dismisses 20,000 black miners in Johannesburg: On January 6, 1986, Impala Platinum dismissed 20,000 black miners from its four-shaft mines near Johannesburg after they went on strike demanding improved wages, shorter hours, and recognition of their union. The company cited the miners' breach of contract and halted production at three of the four mines. The National Union of Mineworkers condemned the dismissals and warned of potential strategic actions to reinstate the workers. source: washingtonpost.com
- 07 Jan Netherlands Bank currency issue: On January 7, 1986, the Netherlands Bank issued new currency as part of its monetary policy. This event was significant in the context of the European financial landscape during the 1980s. The changes aimed to stabilize the economy and manage inflation. source: europarl.europa.eu
- 18 Jan New York Lotto Jackpot Winner: A single lottery ticket wins the New York Lotto jackpot of US$30.5 million, with the winning numbers being 19-20-27-34-41-46. This significant lottery win represents a life-changing moment for the anonymous winner.
- 29 Jan New York Stock Exchange trading volume on January 29, 1986: On January 29, 1986, the New York Stock Exchange recorded a trading volume of 193.8 million shares. This was a significant increase compared to the 191.66 million shares traded on January 2, 1986. The surge in trading volume during this period indicates heightened market activity and investor interest. source: brainyhistory.com
- 20 Feb International Harvester rebrands as Navistar International Corporation: On February 20, 1986, International Harvester Company rebranded itself as Navistar International Corporation, focusing solely on truck and engine manufacturing after selling its agricultural division to Tenneco Inc. in 1984. The new name combined "Navi-" (for navigation) and "Star" (from multiple truck lines), accompanied by an orange-red diamond logo. source: washingtonpost.com
- 28 Feb Single European Act signed to establish single market by 1992: On February 28, 1986, the Single European Act was signed in The Hague, Netherlands, aiming to create a single market within the European Economic Community by 1992. This treaty introduced reforms to harmonize laws and remove trade barriers among member states, marking a significant step towards European integration. source: en.wikipedia.org
- 11 Mar High Trading Volume on New York Stock Exchange: The New York Stock Exchange experiences a significant trading day with 187.27 million shares traded, reflecting the active financial market conditions of the mid-1980s.
- 12 Mar High trading volume on NYSE on March 12, 1986: On March 12, 1986, the New York Stock Exchange (NYSE) experienced significant trading activity, with a volume of 85.68 million shares. This marked a notable increase compared to the previous day's volume of 75.49 million shares. The surge in trading volume was accompanied by a slight decline in the Dow Jones Industrial Average, which fell by 0.60 points to close at 1,745.45. The heightened activity on March 12, 1986, was part of a broader trend of increased trading volumes during that period. source: latimes.com
- 13 Mar Microsoft goes public on March 13, 1986: Microsoft Corporation went public on March 13, 1986, offering 2.5 million shares at an initial price of $21 per share. The IPO raised $61 million, and the company's stock quickly rose, marking a significant milestone in the tech industry. This event helped establish Microsoft as a major player in the software market and contributed to the growth of the personal computer revolution. source: sec.gov
- 18 Mar U.S. Treasury Department announces currency design changes: On March 18, 1986, the U.S. Treasury Department announced the first redesign of U.S. paper currency in over 50 years. The changes included a transparent stripe woven into the paper and small print around the bills' portraits to deter counterfeiting. These modifications aimed to address the threat posed by advanced photocopying technologies to the integrity of U.S. currency. source: washingtonpost.com
- 01 Apr Global oil prices fell below $10 per barrel in April 1986: In early April 1986, global oil prices plummeted below $10 per barrel, marking a significant decline from the previous average of $27.50 per barrel in December 1985. This sharp drop was primarily due to an oversupply in the market, with OPEC's production reaching 18 million barrels per day, leading to a glut and triggering a price war. The price collapse had profound economic implications, affecting oil-producing nations and global markets. source: upi.com
- 03 Apr US national debt reaches $2 trillion milestone: On April 3, 1986, the United States national debt surpassed $2 trillion for the first time, marking a significant milestone in the nation's fiscal history. source: latimes.com
- 07 Apr Leonid Kantorovich, Nobel Laureate Economist, dies at 74: Leonid Vitalyevich Kantorovich, a Soviet mathematician and economist renowned for his contributions to linear programming and economic planning, passed away on April 7, 1986, in Moscow, USSR. He was awarded the Nobel Prize in Economic Sciences in 1975 for his work on the optimal allocation of resources. source: britannica.com
- 09 Apr French government blocks Renault privatization plan: On April 9, 1986, the French government announced its decision to block the privatization of Renault, a major French automobile manufacturer. This move was part of a broader strategy to maintain state control over key industries during a period of economic restructuring. The decision reflected the government's commitment to protecting jobs and national interests in the face of privatization pressures. source: reuters.com
- 11 Apr Rare Canadian Coin Auction: A Canadian 1921 50-cent piece was auctioned in New York City for $22,000, highlighting the significant value of rare numismatic collectibles and the robust market for historical currency.
- 22 Apr Consumer prices fell 0.4% in March 1986, marking the largest quarterly decline in 31 years: In March 1986, the Consumer Price Index (CPI) for all urban consumers decreased by 0.4%, marking the largest quarterly decline in 31 years. This decline was primarily attributed to a significant drop in oil prices, leading to a 6.5% decrease in overall energy costs for the month. The CPI finished the month at 326 after seasonal adjustment, equivalent to a cost of $326 for the government's sample 'market basket' of goods and services that cost $100 in 1967. source: upi.com
- 23 Apr Grand Floridian Beach Resort Groundbreaking: Disney's Grand Floridian Beach Resort, a luxurious Victorian-style hotel at Walt Disney World Resort in Florida, began its construction with a groundbreaking ceremony.
- 02 Jun NYC Transit System Introduces New Token: The New York City transit system issued a new brass token with a distinctive steel bullseye design, marking a small but interesting change in the city's public transportation infrastructure.
- 24 Jun US Senate approves Tax Reform Act of 1986: On June 24, 1986, the US Senate passed the Tax Reform Act of 1986 with a 97-3 vote, marking a significant overhaul of the federal tax code. The legislation aimed to simplify the tax system by reducing the number of tax brackets and eliminating various deductions, while lowering the top tax rate from 50% to 28%. President Ronald Reagan praised the Senate's action, stating, "This is a great day for America." source: reaganlibrary.gov
- 07 Jul Supreme Court strikes down Gramm-Rudman-Hollings Act's automatic deficit reduction provision: On July 7, 1986, the U.S. Supreme Court ruled 7-2 in Bowsher v. Synar that the automatic deficit reduction mechanism of the Gramm-Rudman-Hollings Act violated the separation of powers doctrine by assigning executive functions to a legislative officer, the Comptroller General. This decision rendered the law's automatic budget-cutting provision unconstitutional, requiring Congress to enact deficit reductions through traditional legislative processes. source: washingtonpost.com
- 08 Jul U.S. Steel rebrands as USX Corporation: On July 8, 1986, U.S. Steel Corporation announced it was changing its name to USX Corporation, reflecting its diversification into energy and other non-steel businesses. The new name was derived from the company's New York Stock Exchange trading symbol, "X." source: latimes.com
- 05 Aug OPEC announces oil production curtailment: On August 5, 1986, the Organization of Petroleum Exporting Countries (OPEC) agreed to reduce oil production by nearly 4 million barrels per day for September and October to address the oil glut and raise prices. This decision led to an immediate increase in oil prices, with Brent crude rising by over $3 and West Texas Intermediate by almost $2 per barrel. The production ceiling was set at 16 million barrels per day, aiming to stabilize the market and boost prices. source: upi.com
- 06 Sep Big Mac Index Introduction: The Economist newspaper introduced the Big Mac Index, a semi-humorous but insightful economic tool for comparing purchasing power parity across different countries.
- 13 Sep The Economist introduces Big Mac Index: The Big Mac Index was introduced by The Economist on September 13, 1986, as a lighthearted way to measure purchasing power parity (PPP) between nations. It compares the price of a Big Mac in various countries to assess whether currencies are undervalued or overvalued. This index has since become a popular economic indicator. source: economist.com
- 16 Sep Unisys Corporation formed through merger of Sperry and Burroughs: On September 16, 1986, the Sperry Corporation and the Burroughs Corporation merged to form Unisys Corporation. This merger, valued at $4.8 billion, was the largest in the computer industry at the time, making Unisys the second-largest computer company with annual revenue of $10.5 billion. The name 'Unisys' was chosen from over 31,000 submissions in an internal competition, combining parts of the words 'united', 'information', and 'systems'. source: en.wikipedia.org
- 27 Sep Tax Reform Act of 1986 passed by U.S. Congress: On September 27, 1986, the U.S. Senate passed the Tax Reform Act of 1986, a comprehensive overhaul of the federal tax code. The Act aimed to simplify the tax system, broaden the tax base, and eliminate numerous tax shelters and preferences. It reduced the top individual tax rate from 50% to 28%, increased the standard deduction and personal exemptions, and expanded the earned income tax credit, effectively removing approximately six million low-income Americans from the tax rolls. The Act also increased the corporate tax rate from 46% to 50% and eliminated various tax deductions, including those for rental housing, individual retirement accounts, and depreciation. source: congress.gov
- 20 Oct Launch of the American Eagle Gold Bullion Coin: The American Eagle Gold Bullion Coin was officially launched on October 20, 1986, by the United States Mint. This coin was introduced as part of a program to promote the use of gold bullion coins and to provide investors with a reliable and recognizable gold investment option. The coins are made from 22-karat gold and have become popular among collectors and investors alike. source: usmint.gov
- 21 Oct IBM announces withdrawal from South Africa amid apartheid protests: On October 21, 1986, IBM announced it would sell its South African subsidiary to a company established for the benefit of IBM South Africa employees, citing the deteriorating political and economic situation in the country. This move was part of a broader trend of U.S. companies divesting from South Africa in response to apartheid policies. IBM's decision was met with praise from anti-apartheid activists, though some criticized the company for continuing to sell products in the country. source: washingtonpost.com
- 26 Oct UK Bus Deregulation: Bus transportation services in the United Kingdom undergo significant deregulation, affecting most regions except Greater London and Northern Ireland, marking a major shift in public transportation policy.
- 27 Oct London Stock Exchange Big Bang deregulation: On October 27, 1986, the London Stock Exchange underwent significant deregulation known as the 'Big Bang.' This event transformed the trading environment by allowing electronic trading and removing fixed commission rates, leading to increased competition and innovation in the financial markets. The Big Bang is often credited with revitalizing London's position as a global financial center. source: bbc.com
- 05 Nov Birth of Bank of America as we know it: Bank of America was formed on November 5, 1986, through the merger of several banks, including the original Bank of America founded in 1904. This merger created one of the largest financial institutions in the United States, significantly expanding its reach and services. The new Bank of America became a major player in the global banking industry, offering a wide range of financial services. source: fdic.gov
- 14 Nov Nelson Doubleday and Fred Wilpon purchase New York Mets from Doubleday & Co.: On November 14, 1986, Nelson Doubleday Jr. and Fred Wilpon acquired the New York Mets from Doubleday & Co. for $80.75 million, each obtaining a 50% stake in the team. This transaction marked the beginning of their partnership in Mets ownership. source: newsday.com
- 28 Nov OPEC reaches oil production accord: On November 28, 1986, the Organization of Petroleum Exporting Countries (OPEC) reached an agreement to cut oil production in an effort to stabilize falling oil prices. The accord aimed to reduce the group's total output by more than 3.5 million barrels per day, with Saudi Arabia agreeing to cut production from 6 million to 4.35 million barrels per day, and Kuwait from 1.6 million to 900,000 barrels per day. Iran agreed to limit its production to 2.3 million barrels per day, while Iraq was exempted from the cuts. The agreement was intended to bolster oil prices, which had declined significantly due to overproduction and market glut. source: washingtonpost.com
- 30 Nov Ivan Lendl becomes first tennis player to earn over $10 million in career earnings: On November 30, 1986, Ivan Lendl became the first tennis player to surpass $10 million in career earnings, marking a significant milestone in professional tennis. source: upi.com
- 02 Dec Dow Jones Industrial Average reaches record high of 1,955.57: On December 2, 1986, the Dow Jones Industrial Average closed at a record high of 1,955.57, marking a significant milestone in the 1980s bull market. This surge was driven by expectations of falling interest rates and hopes for a resolution to the Iran arms-trading controversy. source: latimes.com
- 20 Dec OPEC agrees to cut oil production to boost prices: On December 20, 1986, OPEC members, excluding Iraq, agreed to reduce oil production by approximately 7.1% for the first half of 1987, setting a daily production limit of 15.8 million barrels. This decision aimed to raise oil prices toward a target of $18 per barrel. Iraq dissociated itself from the agreement, citing concerns over its production levels and revenue impact. source: washingtonpost.com
- 31 Dec Japan's per capita GNP surpasses the United States in 1986: In 1986, Japan's per capita Gross National Product (GNP) reached $16,330, while the United States' per capita GNP was $17,464. This indicates that Japan's per capita GNP was approximately 93.5% of that of the United States in 1986. source: latimes.com
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