The U.K. made a slight upward revision in its fourth-quarter economic figures, but the modest acceleration in the country's recovery from recession was in part owing to government spending that will have to be cut to rein in a record budget deficit. News that fourth-quarter gross domestic product grew 0.3% from the previous quarter—rather than 0.1%, as earlier estimated—helped inspire speculation that Prime Minister Gordon Brown will call a general election sooner than expected and as early as this weekend. A spokesman for Mr. Brown denied an announcement was imminent. View Full Image None British Prime Minister Gordon Brown The notion of a quick election and negative interpretations on the data momentarily delivered another blow to the sagging pound, as investors fretted about potential political gridlock that could stymie efforts to lower the country's massive deficit. The pound recovered some later in the day. The events show how closely smoke signals from both the economic and political worlds are being watched and interpreted in Britain ahead of an election that must be held by June.[Read more...]