And yes, this warrants the term "Breaking". From the New York Times:
President Obama has told the embattled president of Egypt, Hosni Mubarak, that he should not run for another term in elections in the fall, effectively withdrawing American support for its closest Arab ally, according to American diplomats in Cairo and Washington.
State television said that Mr. Mubarak would address the nation Tuesday evening, and it was expected that he would announce that he would not run for another term.
But it was far from certain that concession would placate protesters in the streets of Cairo, who have made the president’s immediate and unconditional resignation a bedrock demand of their movement.
The Guardian now reports Mubarak will say in his speech that he is leaving this fall.
I doubt this will placate the protesters, but it clearly indicates that the White House is now trying to find an orderly way to get to a Democratic Egypt. You can certainly argue that events are far outrunning Obama here given the enourmous demonstrations that took place today.
More from the Guardian:
Jack Shenker, for the Guardian, is in Tahrir Square, where he says there is a festival atmosphere. He asked people if Mubarak, who is expected to speak any minute, announcing his intention to step down at the next election, in September, would be enough. He said the "overwhelming consensus is that is absolutely not enough
Nonetheless this is a significant shift in Administration Policy. At this point the great unknown here is the extent of contacts between Obama and the Opposition forces that came together over the weekend.
Update
Mubarak has spoken. Per the Guardian:
Mubarak says he will instruct the police apparatus "to protect and serve the citizens in absolute dignity".
He will work to immediately identify and arrest the outlaws who perpetrated the looting etc.
"I pray to God to guide me to the successful right path to end my career in a way that is applicable to God and the people."
"I have exhausted my life serving Egypt but I am totally prepared to end my career"
The translation is halting but he is saying he will not run for another term as president.
In his "few" remaining months he says he will work towards a transition of power.
9.02pm:CloseLink to this update: The protests were "manipulated and controlled by political forces", says Mubarak.
People must chose between "chaos and stability".
The part about the forces behind the protests worries me, and appears to set some predicate for the military to hold onto power.
<update #2>
From the comments, the statement from ElBaradei:
Earlier, ElBaradei said Mubarak should go by Friday to avoid bloodshed.
"What I have heard [from protesters] is that they want this to end – if not today [Tuesday], then by Friday, maximum," ElBaradei told the Al Arabiya satellite channel, adding that Egyptians have marked Friday as "departure day."
"I hope President Mubarak goes before this and leaves the country after 30 years of rule ... I don't think he wants to see more blood," ElBaradei said
Update #3
The New York Times Lede notes:
Kim Ghattas, The BBC's State Department correspondent in Washington, reports: "while there has been no official reaction to Mr. Mubarak's speech yet, privately, some officials believe it was too little too late."
Some Egyptian bloggers and activists seem to have reached the same conclusion. Gigi Ibrahim, a blogger who spoke to The Lede last Thursday, was just asked by CNN if Mr. Mubarak's pledge to leave at the end of his current term was enough said: "Absolutely not. It's a joke, actually."
CNN also reported that people in Tahrir Square responded to the speech by throwing their shoes at Mr. Mubarak image.