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I'm Ashieh Namdar at the CNN.com Newsroom, here's a look at what's happening NOW IN THE NEWS.

A major development in the Middle East; Israel's President Shimon Peres has accepted Israeli Prime Minister Ehud Olmert's official resignation. It came a few hours after Mr. Olmert had told his cabinet he would step down. Olmert is now interim¹ prime minister; he's come under pressure amid allegations of corruption². Foreign Minister Tzipi Livni is holding meetings with other political factions³ to try to form a new government. Observers say Israel could face early elections should there be a political stalemate.

After nine years in power, South Africa's President Thabo Mbeki also announced his formal resignation in a televised address. It will be effective as soon as a new president is elected. The ANC will replace Mr. Mbeki with a so-called caretaker until an election next year. During his address Mbeki denied allegations that he had interfered⁴ in attempts to prosecute⁵ his political rival, Jacob Zuma. Mbeki succeeded Nelson Mandela as president of South Africa in 1999.

Two active-duty American servicemen are among those killed in the biggest blast hit Pakistan in more than seven years. Yesterday suicide bombing outside the Marriott Hotel in Islamabad killed 57 people and injured at least 150 others. This is surveillance video of that attack, it was released this morning. It showes a truck pulling up to the gate then catching⁶ fire after a small explosion, a second larger blast follows. Now the second and the most deadly one was not on the tape, because the bombing knocked out power. No one has claimed responsibility for the attack and the hotel is popular with westerners and have been attacked before.

Five people including three kids escaped uninjured after a helicopter in Kenosha, Wisconsin ripped through their home early this morning. The two onboard the helicopter were killed though. The FAA is investigating the crash. Some fog was reported in the area, but it's not known if that contributed to that accident.

The Bush Administration is defending its 700-billion-dollar bailout package for banks and other troubled financial institutions. Treasury⁷ Secretary Henry Paulson said today the nation's credit markets are very fragile and Congress should move quickly to pass the plan. Lawmakers are reviewing it this weekend. The package also includes an increase to the nation's debt ceiling, raising it by a little less than a trillion dollars.

Those are the headlines this hour for more on these stories and other news of the day, CNN is your source online, on TV or when you are on the go.