Derman, Deutsche Bank, bought American, Bankers Trust, for 10 billion USD forming the largest financial institution in the world.

A fire broke out aboard the cruise ship, Achille Lauro, while on the Indian Ocean forcing all passengers to abandon ship. The ship sank 2 days later. This particular cruise ship had gained worldwide notoriety when in 1985 Palestinian terrorists hijacked the liner and murdered an American passenger.

Kohlberg Kravis Roberts & Co. bought RJR Nabisco for 25 billion USD. It was one of the biggest leveraged buyouts in history.

The music band, Pink Floyd, released their 'The Wall' album.

The People's Republic of South Yemen became independent from the United Kingdom. In 1990 it merged with the Yemen Arab Republic to form the country of Yemen.

The island nation of Barbados became independent from the United Kingdom.

The DeSoto automobile brand ceases to be produced. DeSoto produced cars between 1928 and 1961 and was owned by the Chrysler Corporation.

In London, the Crystal Palace was destroyed by fire. It was erected in Hyde Park to host the Great Exhibition of 1851.

Irish writer, Oscar Wilde, died at the age of 46. He is considered as one of the most important literary figures of the Victorian era. He was imprisoned for 2 years, due to his homosexual encounters with numerous young boys. Apart from his numerous plays, he wrote only one novel, The Picture of Dorian Gray, which is considered as one of the classics of Modern Western literature.

American writer, Samuel Clemens, was born in Missouri. He is most known by his pen name, Mark Twain. He is one of the most celebrated writers in American history and one of the few writers of his era that enjoyed enormous popularity while he was alive. He wrote such classics as, The Adventures of Tom Sawyer and the Adventures of Huckleberry Finn.

The American Revolutionary War came to an end as the United States and Britain signed a preliminary peace treaty in Paris, France.