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14 August 2020 by jbchevrel

In continental Europe, the number of positive tests for Covid-19 is rising sharply as more and more people seek vacations, benefitting from eased restrictions. Germany reported the most new cases since May. New cases in Spain jumped to the highest since at least May 25, when the government changed its methodology for reporting data. Croatia recorded 150 new coronavirus cases on Thursday, the most so far. In France, the situation is worsening too, particularly in Paris and Marseille. As a consequence, the UK government added France, the Netherlands and Malta to a list of countries from where people must quarantine for 14 days on arrival. That developments caused Travel stocks to slump, from this morning, as the news got released overnight. TUI -8% EasyJet -7% AF -6% IAG -5%. That was seemingly better anticipated in CDS, where several Travel CDS proved resilient to that news. Indeed, AFKLM CDS is tighter -45bp on the day. TUI CDS is just wider +1%, this consolidating the almost-5% tightening from earlier this week (cf. Aug 12th post for more details).