NatWest Series, Chester-le-Street: New Zealand 103-3 (17.2 overs) beat England 101 all out (32.5 overs) by seven wickets
New Zealand claimed a seven-wicket victory at the Riverside after bowling England out for their sixth-lowest one-day international total.
James Franklin took a career-best 5-42 and Jacob Oram 3-23 to bowl England's cavalier batsmen out for 101.
In reply, pace bowler Steve Harmison claimed three wickets in the space of two overs on his home ground.
But the Kiwis cruised home with 32 overs left, Scott Styris (23) and Craig McMillan (15) finishing the job.
The Black Caps claimed the bonus point on offer for a quick finish to top the NatWest Series table with 12 points. West Indies have nine while England trail with three.
The hosts only passed their lowest one-day score ever - the 86 made against Australia at Old Trafford in 2001 after a stand of 23 by Harmison and James Anderson.
The top order perished to poor shot selection after being put in to bat in damp conditions and on a pitch displaying signs of uneven bounce.
They began brightly enough, with captain Michael Vaughan and Marcus Trescothick putting on 24 in four overs.
Trescothick took three boundaries of Franklin, who was too short early on, to move to 14.
But the left-hander was ill-advised to take a similar approach to Oram and was bowled going down the track.
Vaughan was bowled through the gate by a delighted Franklin, and the rest of the order followed in quick succession.
New Zealand captain Stephen Fleming asked the left-armer to bowl his 10-over quota in one chunk and by the time he was done England were 65-7.
Anthony McGrath stuck around the longest of the England order, facing 38 deliveries for his 12 runs until getting a glove behind on Oram's return to the attack.
By the mid-way point, the last wicket pair were together at the crease but they at least managed to provide some entertainment.
Harmison's three wickets gave the home fans something to cheer
Harmison in particular delighted his home crowd with an unbeaten 13, surviving a drop by a juggling Fleming with England still short of three figures.
Harmison had the fans cheering again when he got the ball in his hands, with a speed gun clocking him at up to 95mph.
Stephen Fleming's hopes of a 10-wicket win ended with his score on 31 when he flicked a short ball to third man.
And four balls later a subdued Nathan Astle was lbw offering no stroke.
Hamish Marshall was caught fending to leg gully for five but by that time New Zealand had 66 on the board, with victory within their sights.
England: Marcus Trescothick, Michael Vaughan (capt),
Geraint Jones, Andrew Strauss, Paul Collingwood, Anthony
McGrath, Ian Blackwell, Ashley Giles, Darren Gough, Steve
Harmison, James Anderson.
New Zealand: Stephen Fleming (capt), Nathan Astle, Hamish
Marshall, Scott Styris, Craig McMillan, Chris Harris, Jacob
Oram, Chris Cairns, Gareth Hopkins, Daniel Vettori, James