90 seconds at 9 am with BNZ: Pacific Fibre forging ahead with 2nd cable; Dow down on weak US economy; NZ$ down

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news that Pacific Fibre has found a partner to help it build a second optic fibre cable joining New Zealand with Australia and America.

The cable, backed by Sam and Gareth Morgan, Stephen Tindall, Rod Drury and David Kirk, will now cost US$400 million rather than earlier projections of US$500 million.

The partner is Asian company Pacnet. Pacific Fibre aims to lay the cable by 2013, which would provide much needed competition for Telecom's Southern Cross cable and open up capacity to the rest of the world.

Pacific Fibre may raise money through a stock market listing or bond issues.

Meanwhile in the United States, the Dow fell overnight on surprisingly weak US durable goods orders, which suggest the US economy is slowing again.

The New Zealand dollar has fallen a full US cent in the last 24 hours, partly on these renewed concerns about the US economy.

It sat at 72.7 USc just before the Reserve Bank is set to announce whether it will increase the Official Cash Rate as expected to 3% from 2.75%.

We will update this article when we have the news shortly after 9 am.

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