According to news sources, Mubarak may be on the point of being forced out of office. The army have issued a statement about how they intend to "support the legitimate demands of the people" which many are interpreting as code for  "Mubarak - time to go!" Sources predict that this may be confimed later tonight (UK Time).

 The BBC report states:

Egypt's President Hosni Mubarak is to make an address on national television, amid suggestions that he is preparing to step down.

A senior member of Egypt's governing party, Hossan Badrawi, told the BBC he "hopes" Mr Mubarak will transfer power to Vice-President Omar Suleiman.

The country's military, meanwhile, has said it will "support the legitimate demands of the people".

It comes on the 17th day of protests against Mr Mubarak's 30-year rule.

Thousands of Egyptians again took to the streets of Cairo and other Egyptian towns and cities, calling for President Mubarak to step down.

Doctors, bus drivers, lawyers and textile workers were on strike in Cairo on Thursday, with trade unions reporting walkouts and protests across the country.

 We will provide full analysis of the unfolding events over the next hours - watch this space!

Update:(21.00 UK time)

Mubarak is on TV refusing to go - he has thrown down the gauntlet to one and all to take action or shut up. All this could change in a matter of hours if the army moves. The masses are out on the streets expressing their anger.

According to the BBC - Paul Adams in Tahrir Square reports: "The mood in Tahrir Square has changed dramatically in the wake of President Mubarak's televised address. There is a deafening roar rising from the crowd with numerous chants calling for an end to the regime and "revolution till we die". The mood contrasts dramatically with the celebratory, almost party atmosphere that existed in the hours running up to his statement on television." Another reporter adds:Journalist Lina Wardani tells the BBC: "Thousands of angry Egyptians are moving now towards the presidential palace. I think things will change tonight or tomorrow morning. I don't expect these angry masses to go home or wait until tomorrow. These people are not going to go home. It's not only Tahrir, it's all the streets to downtown. People are chanting 'down with the regime'."

VP Sulliman's speech has been greeted with huge chants of anger - not the reaction he wanted. Another report states that the Army leadership is meeting in emergency session. The BBC news sums it up - we have arrived at a watershed moment.

The time has come to move the revolution forward. Power lies with the masses! We repeat what Alan Woods said in his article on Wednesday:

The old state power is breaking up. It must be given a final push and replaced with a new power. Only the proletariat can show a way out by placing itself at the head of the Nation. The workers of Egypt have a tremendous power in their hands but it must be organized. That can only be done through the establishment of revolutionary committees. In some areas committees exist, but they must be extended to every workplace, neighbourhood, school and college, and they must be coordinated on a national scale.